The Impact of Related Parties Transactions to Market Valuation of FIRMS

JAYANTHI, NIKI and Rudiawarni, Felizia Arni (2013) The Impact of Related Parties Transactions to Market Valuation of FIRMS. In: International Annual Symposium on Management Challenges and Opportunities of The Leading Edge in World Class Supply Chain Management, 16 Maret 2013, Bali, Indonesia.

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Abstract

Abstract- Related parties' transactions, which are not arm-length transactions, usually make investors perceived that it is connected to opportunistic transactions. Those transactions are seen as tools to execute accounting scandals that can affect market valuation of firms. On the other hand, related parties' transactions also ·can be done in consideration to increase the efficiency in the company (efficient transactions). The objective of this research is to examine the impact of related parties' transactions to market valuation of firms. In this research, market valuation of firms is proxied by Tobin's Q, market value of equity and annual shareholders' return. Researcher used 309 firms as sample of this research and hypothesizes are tested by multiple linear regression. Result of this research are (1) related parties transactions have no significant impact to market valuation of firms proxied by Tobin's Q and annual shareholders' return; (2) related parties' transactions have significant impact to market valuation of firms proxied by market value of equity

Item Type: Conference or Workshop Item (Speech)
Uncontrolled Keywords: related parties transactions, firm valuation
Subjects: H Social Sciences > HG Finance
Divisions: Faculty of Business and Economic > Department of Accounting
Depositing User: Adpesdam Ubaya
Date Deposited: 18 Jun 2014 01:38
Last Modified: 18 Jun 2014 01:40
URI: http://repository.ubaya.ac.id/id/eprint/16938

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