The Effects of Corporate Governance and Related Party Transactions on Firm Performance among Pakistani Family-Owned Firms

Author(s):  
Fazli Azim ◽  
Mohd Zulkairi Mustapa ◽  
Fauzi Zainir
2018 ◽  
Vol 5 (2) ◽  
Author(s):  
Raj K Kovid ◽  
Sanjeev Dhar ◽  
Mridul Dharwal

Research on examining the relationship between the extent of related party transactions (RPTs) and the firm performance lack consensus. To further investigate this relationship, we use data of a sample of 483 Indian companies listed at National Stock Exchange (NSE) for the period 2013-2017. Based on analysis of data using panel regression, we observe that different forms of RPTs - income, expenses, borrowings and Loans, bank guarantee - do not lead to enhancement of the firm performance. However, the income from related parties are found to be negatively associated with firm performance. This is consistent with the hypothesis of principal-principal or manager conflict in corporate governance.


CFA Digest ◽  
2009 ◽  
Vol 39 (4) ◽  
pp. 16-18
Author(s):  
Frank T. Magiera

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