Abnormal Related Party Transactions, Political Connection, and Firm Value: Evidence from Indonesian Firms

This study aims to examine the effect of abnormal related party transactions (RPTs) on firm value and to investigate political connections as a moderator of the causal relationship. Our sample is 450 Indonesian firms listed at the Indonesia Stock Exchange during the period of 2014–2017 with a total of 1,724 firm-year observations. Based on the panel data regression test, our results demonstrate that abnormal RPTs, especially account receivables-related RPTs and account payables-related RPTs, decrease firm value. Further, the results empirically show that political connections negatively affect firm value. Political connections strengthen the effects of abnormal non-account receivable RPT assets and abnormal non-account payable RPT liabilities on firm value. Our findings imply that agency theory explains the impacts of political connections of Indonesian firms better than resource dependence theory.

Download Full-text

The effect of related party transactions on firm performance: the moderating role of political connection in indonesian banking

Verslas teorija ir praktika ◽

10.3846/btp.2019.08 ◽

2019 ◽

Vol 20 ◽

pp. 81-92 ◽

Cited By ~ 2

Author(s):

Mr Supatmi ◽

T. Sutrisno ◽

Erwin Saraswati ◽

Bambang Purnomosidhi

Keyword(s):

Panel Data ◽

Stock Exchange ◽

Market Performance ◽

Political Connections ◽

Political Connection ◽

Limited Information ◽

Related Party Transactions ◽

Macroeconomic Conditions ◽

Panel Data Regression ◽

Data Regression

This study aims to examine the effect of related party transactions (RPTs) on banks’ performance and investigates political connections as moderator in their causal relationship. Our sample is 40 Indonesian banks listed on the Indonesian Stock Exchange for the years 2013–2016 with 160 observations as panel data. Based on panel data regression test, our results demonstrate that account receivables-related RPTs have a positive effect on banks’ profitability and its market performance (Tobin’s Q), but there are consequences of high operating costs and the risk of non-performing loans. Banks receive more funds from their related parties (account payables-related RPTs), banks exhibit higher capital capability and lower market performance. Further, the political connection index in banks significantly affect banks’ capability, liquidity, efficiency, and market value through RPTs. This result indicates that political connection strengthens the effects of RPTs on banks’ performance. Although this study has limited information in determining political connections and has not considered macroeconomic conditions, these findings imply that political connection plays an important role in banks’ performance in Indonesia.

Download Full-text

ANALISIS PENGARUH CAPITAL/LABOUR INTENSIVE, INVESTASI, KEPEMILIKAN MANAJERIAL, LEVERAGE OPERASI DENGAN VARIABEL MEDIASI KEBIJAKAN DIVIDEN DAN LEVERAGE KEUANGAN TERHADAP NILAI PERUSAHAAN

Jurnal Dinamika Manajemen dan Bisnis ◽

10.21009/jdmb.01.1.5 ◽

2017 ◽

Vol 1 (1) ◽

pp. 1-21 ◽

Cited By ~ 1

Author(s):

Robi Nugraha

Keyword(s):

Path Analysis ◽

Firm Value ◽

Stock Exchange ◽

Financial Sector ◽

Managerial Ownership ◽

Financial Leverage ◽

Panel Data Regression ◽

Data Regression ◽

Result Show ◽

Operating Leverage

ABSTRACT The purpose of this study was to analyze the influence of capital labour intensive, investment, managerial ownership, operating leverage, dividen and financial leverage on the firm value of Indonesia non financial sector companies, the influence of capital labour intensive, investment, managerial ownership, operating leverage variable on dividen and financial leverage of Indonesia non financial sector companies, and the influence of capital labour intensive, investment, managerial ownership, operating leverage variable on the firm value through dividen and financial leverage as intervening variable. The research data was collected using purposive sampling method to the data of non financial sector companies listed on the Indonesian Stock Exchange during the period 2003-2012. Based on the criteria of the study obtained 310 samples were then analyzed Using the panel data regression and path analysis. The results show that the capital labour intensive, investment, managerial ownership, operating leverage, dividen and financial leverage have significant influences on the firm value of Indonesia non financial sector companies. The capital labour intensive, investment, managerial ownership, operating leverage variable do not have significant influences on dividen. The capital labour intensive, investment, managerial ownership, operating leverage variable have significant influences on financial leverage. With path analysis, the result show the The capital labour intensive, investment, managerial ownership, operating leverage variable do not have significant influence on the firm value of Indonesia non financial sector companies with dividen and financial leverage as intervening variable. Keywords: Capital Labour Intensive, Investment, Managerial Ownership, Operating Leverage, Dividen and Financial Leverage, Firm Value.

Download Full-text

Determinats Of The Amount Of Related Party Transaction: Tax Expense And Institutional Ownership

Jurnal Reviu Akuntansi dan Keuangan ◽

10.22219/jrak.v10i3.13651 ◽

2020 ◽

Vol 10 (3) ◽

Author(s):

Lia Rahmawati Soraya ◽

Nurul Aisyah Rachmawati

Keyword(s):

Stock Exchange ◽

Institutional Ownership ◽

Total Sample ◽

Manufacturing Companies ◽

Institutional Variables ◽

Related Party Transactions ◽

Panel Data Regression ◽

Data Regression ◽

Transaction Tax ◽

Tax Expense

This research is testing whether tax expense and institutional ownership have an influence on the amount of Related Party Transactions (RPT) both related to sales and expense (RPTSE). The population in this research is manufacturing companies listed on the Indonesia Stock Exchange with a total sample of 174 out of 58 manufacturing companies with research period in 2016-2018. By using panel data regression analysis, the results showed indicate that the tax expense of the previous year has a significant positive effect on the amount of related party transactions related to sales and expenses (RPTSE). This shows that the tax expense can encourage companies to conduct related party transactions in the following year. Meanwhile, institutional variables do not have a significant effect on related party transactions related to sales and expense (RPTSE).Practically, related party transactions are relatively complex, so that institutional ownership does not guarantee tomonitor of these transactions.

Download Full-text

MODAL INTELEKTUAL, KEPEMILIKAN INSTITUSIONAL TERHADAP PROFITABILITAS DAN NILAI PERUSAHAAN

Jurnal Riset Akuntansi Kontemporer - Vol 13 No 2 (2021): October Edition ◽

10.23969/jrak.v12i1.4041 ◽

2020 ◽

Vol 12 (1) ◽

pp. 15-24

Author(s):

Nurramayuningsih Nurramayuningsih ◽

Mujibah A. Sufyani

Keyword(s):

Regression Analysis ◽

Financial Performance ◽

Intellectual Capital ◽

Firm Value ◽

Stock Exchange ◽

Secondary Data ◽

Institutional Ownership ◽

Manufacturing Companies ◽

Panel Data Regression ◽

Data Regression

Knowledge and intangible assets become the important source of competitive advatage for company (knowledgw-based economy). The study aims was to investigate the effect of intellectual capital, institutional ownership to profitability and firm value. Sample used were 6 manufacturing companies of sub sectors consumer goods industry listed on the Indonesia Stock Exchange from 2012 to 2017, with purposive sampling, secondary data, and panel data regression analysis. The results indicated that simultaneous intellectual capital and institutional ownership affected financial performance. Partially intellectual capital had a positive and significant effect on financial performance, but institutional ownership did not have significant effect. Financial performance has a positive and significant effect on firm value. Intelectual capital had an important roles to increase performance and value of the firm.

Download Full-text

Pengaruh Koneksi Politik terhadap Nilai Perusahaan

E-Jurnal Akuntansi ◽

10.24843/eja.2020.v30.i06.p16 ◽

2020 ◽

Vol 30 (6) ◽

pp. 1550

Author(s):

Winny Evalestine Patriarini

Keyword(s):

Regression Analysis ◽

Multiple Regression Analysis ◽

Multiple Regression ◽

Firm Value ◽

Stock Exchange ◽

Political Connections ◽

The Political ◽

Political Connection ◽

Analysis Model ◽

A Company

The purpose of this study is to analyze the effect of political connection on firm value. This study uses 160 samples listed on the Indonesia Stock Exchange for the period 2014 to 2018. The analysis used in this study is the Multiple Regression analysis model that is processed with SPSS 20 software. This study found that political connections had a positive and significant effect on firm value. The results show that the political connections that a company has can cause a company to have an advantage so that it can increase the value of the company. Keywords: Political Connection; Firm Value.

Download Full-text

Political Connection and Firm Value in Indonesia

Sebelas Maret Business Review ◽

10.20961/smbr.v3i2.14932 ◽

2019 ◽

Vol 3 (2) ◽

pp. 1

Author(s):

Versiandika Yudha Pratama ◽

Doddy Setiawan

Keyword(s):

Firm Value ◽

Stock Price ◽

Abnormal Return ◽

Stock Exchange ◽

Secondary Data ◽

Sampling Technique ◽

Financial Sector ◽

Political Connections ◽

Political Connection ◽

Cumulative Abnormal Return

This is an event study aims to determine the influence of political connections to firm value as measured by cumulative abnormal return on non-financial sector companies listed in Indonesia Stock Exchange. This study used secondary data in the form of stock price and annual financial statement obtained the Indonesia Stock Exchange website, Indonesian Capital Market Directory, and other relevant sources. In sampling technique, purposive sampling method is used where 272 non-financial sector companies are selected. The data is examined by using multiple linear regression to measure the influence of political connections on firm value. The findings of this study revealed that political connections have an effect on firm value as measured by cumulative abnormal return on non-financial sector companies listed in Indonesia Stock Exchange.

Download Full-text

The Effect of Intellectual Capital Disclosure, Corporate Governace, and Firm Size on Firm Value

KnE Social Sciences ◽

10.18502/kss.v3i26.5399 ◽

2019 ◽

Author(s):

Dewi Puji Rahayu

Keyword(s):

Firm Size ◽

Intellectual Capital ◽

Firm Value ◽

Stock Exchange ◽

Coefficient Of Determination ◽

Panel Data Regression ◽

Data Regression ◽

Result Show ◽

Negative Effect ◽

Corporate Governace

This study aims to analyze the effect of intellectual capital, corporate governance and ﬁrm size towards ﬁrm value. The research method used is panel data regression analysis, by using purposive sampling method, there are eighty one companies from 2012 – 2017 period and listed on the Indonesia Stock Exchange. The result show that, intellectual capital disclosure and ﬁrm size have a signiﬁcant negative effect on ﬁrm value. Furthermore, institution ownership have a signiﬁcant positive on ﬁrm value. Intellectual capital disclosure, institution ownership and ﬁrm size simultaneously have a signiﬁcant on ﬁrm value, with the value of the coefﬁcient of determination (R2) of 0.90, indicate that all independent variables can explain the variation of ﬁrm value of 90%, whereas the remainder of 10% is explained by other factors not included in the model.

Download Full-text

PENGARUH INTELLECTUAL CAPITAL, LEVERAGE, PROFITABILITAS, DAN LIKUIDITAS TERHADAP NILAI PERUSAHAAN

Current: Jurnal Kajian Akuntansi dan Bisnis Terkini ◽

10.31258/jc.2.2.259-277 ◽

2021 ◽

Vol 2 (2) ◽

pp. 259-277

Author(s):

Azlin Shakila Putri ◽

Desrir Miftah

Keyword(s):

Intellectual Capital ◽

Firm Value ◽

Quantitative Research ◽

Stock Exchange ◽

Secondary Data ◽

Sampling Technique ◽

Return On Equity ◽

Panel Data Regression ◽

Data Regression ◽

Equity Ratio

The objective of this study is to analyze the influence of intellectual capital, leverage, profitability and liquidity on firm value. Firm value is measured by price to book value (PBV), leverage is measured by debt to equity ratio (DER), profitability by return on equity (ROE) and liquidity by current ratio (CR). This research method is a quantitative research with sampling using a purpose sampling technique based on predetermined characteristics as many as 9 pharmaceutical sub-sector companies listed on the Indonesia Stock Exchange for the period 2016 - 2019. The type of data used is secondary data and the analytical method used is panel data regression using Eviews. The results show that intellectual capital, leverage, profitability have a significant effect on firm value. However, liquidity has no effect on firm value.

Download Full-text

Pengaruh Struktur Kepemilikan Terhadap Nilai Perusahaan Dengan Profitabilitas Sebagai Variabel Intervening Studi Pada Sektor Property dan Real Estate

EQUILIBRIUM Jurnal Ilmiah Ekonomi dan Pembelajarannya ◽

10.25273/equilibrium.v8i2.7109 ◽

2020 ◽

Vol 8 (2) ◽

pp. 115

Author(s):

Sutrisno, Luky Retno Sari

Keyword(s):

Real Estate ◽

Firm Value ◽

Annual Report ◽

Stock Exchange ◽

Sampling Technique ◽

Institutional Ownership ◽

Managerial Ownership ◽

Panel Data Regression ◽

Data Regression ◽

Data Collection Technique

This study aims to investigate the effect of ownership on firm value with profitability as an intervening variable. The dependent variable used is PBV. While the independent variables used are managerial ownership and institutional ownership. The intervening variable used is ROA. The data in this study used an annual report from 18 property and real estate companies listed on the Indonesia Stock Exchange in 2014 to 2018. The data collection technique used purposive sampling technique obtained from the web www.idx.co.id and each website from the sample company. Data processing uses panel data regression and the results reveal that managerial ownership and institutional ownership have no effect on firm value. While profitability (ROA) is able to mediate institutional ownership of firm value. But profitability (ROA) is not able to mediate managerial ownership of firm value.

Download Full-text

Analysis of The Effect of Profitability and Liquidity on Income Management Which Impact on Company Value in Soe Banks Registered on Indonesia Stock Exchange Period 2009-2019

Syntax Literate ; Jurnal Ilmiah Indonesia ◽

10.36418/syntax-literate.v6i3.2307 ◽

2021 ◽

Vol 6 (3) ◽

pp. 1297

Author(s):

Masno Marjohan

Keyword(s):

Earnings Management ◽

Firm Value ◽

Stock Exchange ◽

Return On Assets ◽

Company Value ◽

Panel Data Regression ◽

Analysis Technique ◽

Data Regression ◽

Comprehensive Picture ◽

The Impact

This study aims to analyze, test the effect of profitability as measured by Return On Assets, liquidity as measured by LDR on earnings management, and the impact of earnings management on firm value in state-owned tire companies listed on the Indonesia Stock Exchange from 2009 to 2019. Total population This research is 4 state-owned bank companies so that the entire population is sampled with a period of 10 years from 2009-2019. The analysis technique used in this research is panel data regression to obtain a comprehensive picture of the relationship between one variable and another. The results of the research partially show that ROA, LDR Profitability has no effect on Earning Management, Profitability and Liquidity simultaneously have an effect on Earnings Management, and show that earnings management affects Firm Value.

Download Full-text