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

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.

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

International Journal of Business and Society ◽

10.33736/ijbs.3189.2021 ◽

2021 ◽

Vol 22 (1) ◽

pp. 461-478

Author(s):

Supatmi Supatmi ◽

Sutrisno Sutrisno ◽

Erwin Saraswati ◽

Bambang Purnomosidhi

Keyword(s):

Firm Value ◽

Resource Dependence ◽

Stock Exchange ◽

Resource Dependence Theory ◽

Political Connections ◽

Political Connection ◽

Related Party Transactions ◽

Panel Data Regression ◽

Data Regression ◽

Better Than

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.

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ANALISA PENGARUH INTELLECTUAL CAPITAL TERHADAP KINERJA PASAR DAN KINERJA KEUANGAN PADA PERUSAHAAN LQ45 YANG TERDAFTAR DI BURSA EFEK INDONESIA PERIODE TAHUN 2010-2013

Jurnal ASET (Akuntansi Riset) ◽

10.17509/jaset.v9i1.5260 ◽

2017 ◽

Vol 9 (1) ◽

pp. 133

Author(s):

Siti Nurhayati

Keyword(s):

Panel Data ◽

Financial Performance ◽

Intellectual Capital ◽

Sampling Method ◽

Stock Exchange ◽

Market Performance ◽

Return On Assets ◽

Purposive Sampling ◽

Panel Data Regression ◽

Data Regression

Abstract.The study aims to examine the effect of Intellectual Capital on Market Performance and Financial Performance in the LQ45 companies. It uses the sample of LQ45 companies listed on Indonesia Stock Exchange during the period 2010-2013. The sample is determined by using Purposive Sampling method. The study conducts 72 observations of 18 samples of the companies. The hypothesis is tested using Panel Data Regression. The study indicates that the Intellectual Capital (VAIC) and VACA of companies significantly influence market performance (Tobins'Q) and financial performance of Return on Assets (ROA) and Assets Turnover (ATO). VAHU significantly effects on the financial performance of Return on Assets (ROA) and STVA significantly effects on the financial performance of Assets Turnover (ATO). Meanwhile, VAHU has no significant effect on the market performance (Tobins'Q) and financial performance of Assets Turnover (ATO). And STVA has no significant effect on the market performance (Tobins'Q) and financial performance of Return on Assets (ROA).Keywords: intellectual capital; lq45; market performance; financial performance; tobins'q; return on assets; assets turnover.Abstrak. Penelitian ini bertujuan untuk menguji pengaruh Intellectual Capital terhadap Kinerja Pasar dan Kinerja Keuangan pada Perusahaan LQ45.Penelitian ini menggunakan sampel perusahaan LQ45 yang terdaftar di Bursa Efek Indonesia selama periode 2010-2013.Sampel ditentukan dengan menggunakan metode Purposive Sampling.Penelitian ini memiliki 72 amatan dari 18 sampel perusahaan.Dalam penelitian ini, hipotesis diuji dengan menggunakan Regresi Data Panel. Penelitian menunjukkan bahwa Intellectual Capital (VAIC) dan VACA perusahaan berpengaruh signifikan terhadap kinerja pasar (Tobins’Q) dan kinerja keuangan Return on Asset (ROA) dan Assets Turnover (ATO). VAHU berpengaruh signifikan terhadap kinerja keuangan Return on Asset (ROA) dan STVA berpengaruh signifikan terhadap kinerja keuangan Assets Turnover (ATO). Sedangkan VAHU tidak berpengaruh signifikan terhadap kinerja pasar (Tobins’Q) dan kinerja keuangan Assets Turnover (ATO). Dan STVA tidak berpengaruh signifikan terhadap kinerja pasar (Tobins’Q) dan kinerja keuangan Return on Asset(ROA).Kata kunci: intellectual capital; perusahaan lq45; kinerja pasar; kinerja keuangan, tobins’q; return on assets; assets turnover.

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Effect of Blockholder Ownership on the Related Party Transactions to the Financial Industries

International Journal of Social Science and Business ◽

10.23887/ijssb.v5i2.35605 ◽

2021 ◽

Vol 5 (2) ◽

Author(s):

Supatmi Supatmi ◽

Ines Aprilia Primadani

Keyword(s):

Panel Data ◽

Stock Exchange ◽

Related Party Transactions ◽

Agency Conflict ◽

Positive Effects ◽

Accounts Payable ◽

Panel Data Regression ◽

Data Regression ◽

Regression Test ◽

Ownership Effect

This study aimed to find out blockholder ownership effect on tunnelling or propping related party transactions. Sample researchs were 82 financial industries that listed in Indonesian Stock Exchange in 2017-2019 with 246 observations as panel data. Based on panel data regression test, this study found blockholder ownership had positive effects on tunnelling related party transactions that proxied by related party transactions related to accounts receivable and related party transactions related to assets other than account receivables. Meanwhile, blockholder ownership had no effect on propping related party transactions that proxied by related party transactions related to accounts payable and liabilities other than accounts payable. The study also found blockholder ownership effect on tunnelling related party transactions was bigger than propping. These findings were appropriate with the relevant agency theory about blockholder ownership effect on related party transactions which had the potency on the emergence of agency conflict among the shareholders.

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FAKTOR DETERMINAN PEMBENTUK STRUKTUR MODAL PADA PERUSAHAAN SEKTOR FARMASI PERIODE 2012 - 2016

Jurnal Riset Manajemen dan Bisnis (JRMB) Fakultas Ekonomi UNIAT ◽

10.36226/jrmb.v2is1.57 ◽

2017 ◽

Vol 2 ◽

pp. 241-250

Author(s):

Neng Ria Kanita ◽

Hendryadi Hendryadi

Keyword(s):

Panel Data ◽

Capital Structure ◽

Firm Size ◽

Stock Exchange ◽

Pharmaceutical Manufacturing ◽

Manufacturing Companies ◽

Purposive Sampling ◽

Panel Data Regression ◽

Data Regression ◽

Partial Effects

This study aims to examine the simultaneous and partial effects of profitability, liquidity, and firm size on capital structure. The sample is 10 pharmaceutical manufacturing companies listed in Indonesia Stock Exchange period 2012-2016, using purposive sampling. The technique of analysis used is panel data regression (pooled regression). The results showed that the selected model is the fixed effect. Simultaneously NPM, CR, and Firm Size have a significant effect on capital structure. Partially NPM has a negative and significant effect on capital structure. CR partially have a negative and not significant effect on capital structure. Partially Firm Size have a positive and significant effect on capital structure. Variables that have a significant effect on capital structure are NPM and Firm Size. While CR does not significantly affect the capital structure. Keywords: Capital Structure, Profitability, Liquidity, Firm Size

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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.

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THE Determinant of Dividend Policy on Manufacturing Companies Listed on BEI

European Journal of Business Management and Research ◽

10.24018/ejbmr.2020.5.4.342 ◽

2020 ◽

Vol 5 (4) ◽

Author(s):

Dahlia Br Pinem ◽

Azzahra Meirizqi Louisa Tindangen ◽

P. Dewi Cahyani

Keyword(s):

Panel Data ◽

Dividend Policy ◽

Stock Exchange ◽

Secondary Data ◽

Test Results ◽

Manufacturing Companies ◽

Data Types ◽

Significance Level ◽

Panel Data Regression ◽

Data Regression

This research belong to determine the factors that influence dividend policy on manufacturing companies listed on the Indonesia Stock Exchange (IDX). This study uses dividend policy as the dependent variable. Meanwhile the independent variables in this study are profitability, and leverage. This is a quantitative study using secondary data types and panel data regression analysis as a method of analysis. The population in this study was 669 companies that were listed on the IDX. Samples were selected by means of purposive sampling methods which included 39 manufacturing companies in the 2016- 2018 period. Panel data regression test results with a significance level of 0.05 had explained that profitability has a significant effect on dividend policy, and leverage has no significant effect effect on dividend policy.

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Effect of Firm Size Firm Growth Firm Age and Independent Commissioner on Intellectual Capital Disclosure in Banking Companies Listed on the Indonesia Stock Exchange in the period 2014 – 2018

Academia Open ◽

10.21070/acopen.3.2020.1150 ◽

2021 ◽

Vol 3 ◽

Author(s):

Lailatul Khosi'ah ◽

Sriyono

Keyword(s):

Panel Data ◽

Firm Size ◽

Intellectual Capital ◽

Firm Growth ◽

Stock Exchange ◽

Financial Statements ◽

Firm Age ◽

Panel Data Regression ◽

Data Regression ◽

Size Firm

The purpose of the study was to determine and analyze the effect of Firm Size, Firm Growth, Firm Age and Independent Commissioner on Intellectual Capital Disclousure partially and simultaneously to determine a model that can be used to measure Intellectual Capital Disclousure in companies by using panel data regression in Registered Banking companies on the Indonesia Stock Exchange. This study applies quantitative method and the object of this research is done by population and sample randomly (purposive sampling), which are 11 consumer goods companies that were Listed on the Indonesia Stock Exchange in the period 2014 - 2018. The technique of collecting data used annual financial statements from the period 2014 - 2018 and analysis used panel data regression method with common model approach using Eviews 9 program.The results of this study showed that simultaneously and partially variables Firm Size, Firm Growth, Firm Age and Independent Commissioner have a significant effect on Intellectual Capital Disclousure

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PENGARUH KOMPENSASI MANAJEMEN DAN GOOD CORPORATE GOVERNANCE TERHADAP MANAJEMEN PAJAK SUB SEKTOR MAKANAN DAN MINUMAN DI BURSA EFEK INDONESIA

10.31227/osf.io/3vnmd ◽

2019 ◽

Author(s):

Melsy Darta ◽

Marlina

Keyword(s):

Corporate Governance ◽

Panel Data ◽

Stock Exchange ◽

Management Compensation ◽

Good Corporate Governance ◽

Panel Data Regression ◽

Tax Management ◽

Data Regression ◽

Food And Beverage ◽

Positive Effect

ABSTRACTThis study aims to examine the effect of management compensation, the number of board of commissioners and the percentage of independent commissioners on tax management. The object of this research is the food and beverage sub-sector companies listed on the Indonesia stock exchange. The population in this study is the food and beverage sub-sector companies listed on the Indonesia stock exchange in the period 2013 - 2017. The sample used was Purposive Sampling, a total of 8 companies that will be sampled with 40 observations.The method of analysis of this study uses panel data regression using Eviews 8. The results of this study indicate that management compensation has a positive effect on tax management , the number of board of commissioners and percentage of independent commissioners have no effect on tax management. Keywords: management compensation, board of commissioners, the percentage of independent commissioners, tax management

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THE EFFECT OF PROFITABILITY, CAPITAL STRUCTURE AND CORPORATE VALUES ON RETURN OF SHARES (TELECOMMUNICATIONS SUB SECTOR IN INDONESIA STOCK EXCHANGE 2014-2018)

Dinasti International Journal of Digital Business Management ◽

10.31933/dijdbm.v1i1.102 ◽

2020 ◽

Vol 1 (1) ◽

pp. 69-77

Author(s):

Asih Try Wulandari ◽

Aty Herawati

Keyword(s):

Panel Data ◽

Stock Returns ◽

Stock Return ◽

Stock Exchange ◽

Series Data ◽

Annual Data ◽

Business World ◽

Telecommunications Sector ◽

Panel Data Regression ◽

Data Regression

The development of increasingly stringent business world in Indonesia will create an increasingly sharp competition between companies. Firms in the industry in Indonesia is a land for investors to invest capital to be invested in various forms of securities. So it is not wrong for the company's various aspects and types become part of the capital market. This study was conducted to determine the effect of ROE, DER and PBV to Stock Return on Telecommunications Sector Sub Listed in Indonesia Stock Exchange. This study uses annual data for the observation period from 2014 until 2018. The research type is descriptive causality. The data used is the data panel that is a combination of annual time series data and cross section were processed using panel data regression analysis. The population is all Sub-Sector Telecommunications listed in Indonesia Stock Exchange from 2014 until 2018 the number of 5 companies. The sampling technique used purposive sampling, found a sample of four companies with the observation of 5 years in order to obtain total observation as much as 20. Data were obtained from the Indonesia Stock Exchange, and Yahoo Finance. Analysis of the data in this study is panel data regression. The model used is the Common Effect Model. The analysis showed that the ROE does not have a significant effect on stock returns, DER has no significant effect on stock returns, while PBV positive and significant effect Stock Return on Telecommunications Sector Sub Listed in Indonesia Stock Exchange.

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Pengaruh good corporate governance terhadap profitabilitas perusahaan

Jurnal Manajemen Strategi dan Aplikasi Bisnis ◽

10.36407/jmsab.v2i3.93 ◽

2019 ◽

Vol 2 (3) ◽

pp. 127-136

Author(s):

Suci Subiyanti ◽

Rachma Zannati

Keyword(s):

Corporate Governance ◽

Panel Data ◽

Empirical Evidence ◽

Sampling Method ◽

Stock Exchange ◽

Managerial Ownership ◽

Good Corporate Governance ◽

Panel Data Regression ◽

Analysis Technique ◽

Data Regression

The purpose of this study is to provide empirical evidence regarding the effect of the size of the Independent Commissioners and Managerial Ownership on Profitability as measured by ROA. The object of this study is a banking company listed on the Stock Exchange in the 2013-2017 period. Based on the purposive sampling method that is based on the criteria that have been determined, 15 companies were obtained as research samples. The analysis technique uses panel data regression using E-Views 9 software. The results of the study prove that the Independent Board of Commissioners has no significant effect on profitability, while managerial ownership has a significant effect on profitability. Implications and suggestions are explained in this study.

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