scholarly journals The Effect of Political Connections on Relationships between Related Party Transactions and Restatement Financial Statements

2021 ◽  
Vol 13 (49) ◽  
pp. 1-30
Author(s):  
Mohsen Salehinia ◽  
◽  
Ali Tamoradi ◽  
Ebrahim Sepehri ◽  
◽  
...  
Keyword(s):  
Financial Statements ◽  
Political Connections ◽  
Related Party Transactions

scholarly journals Revenues from related parties: A risk factor in Italian listed company financial statements

2015 ◽  
Vol 13 (1) ◽  
pp. 254-265
Author(s):  
Fabrizio Bava ◽  
Melchiorre Gromis di Trana
Keyword(s):  
Risk Factor ◽  
Listed Company ◽  
Financial Statements ◽  
Related Party Transactions ◽  
Corporate Scandals ◽  
A Company

In recent decades, related party transactions (RPTs) have played a prime role in major corporate scandals, obliging regulators to strengthen the rules with new bans and expensive requirements on companies. This study aims to contribute to the literature on RPTs, providing evidence to justify increasingly expensive and mandatory regulation. Results show that the intensity of related party revenues increases where a company has lost profitability as well as turnover.

scholarly journals DETERMINASI PENGUNGKAPAN TRANSAKSI PIHAK BERELASI BERDASARKAN PSAK NO.7 TAHUN 2018

2020 ◽  
Vol 6 (1) ◽  
pp. Press
Author(s):  
Jessyka Tridewi Purba ◽  
Husnah Nur Laela Ermaya ◽  
Ayunita Ajengtiyas
Keyword(s):  
Earnings Management ◽  
Audit Committee ◽  
Stock Exchange ◽  
Manufacturing Sector ◽  
Secondary Data ◽  
Sampling Technique ◽  
Institutional Ownership ◽  
Financial Statements ◽  
Managerial Ownership ◽  
Related Party Transactions

This study aims to examine the effect of Audit Committee, Independent Commissioner, Institutional Ownership, Managerial Ownership, Earnings Management to Related Party Transaction Disclosure. This type of research is quantitative reseacrh using secondary data of financial statements from manufacturing sector companies during 2016 to 2018 obtained from Indonesia Stock Exchange. The sampling technique that used is purposive sampling. The results showed that the Audit Committee, Independent Commissioners, Institutional Ownership, Managerial Ownership and Profit Management were able to influence the disclosure of related party transactions by 13%, while the remaining 87% were influenced by other variables outside this study. Partially, institutional ownership and managerial ownership significantly influence the disclosure of related party transactions. While the audit committee, independent commissioners and earnings management do not affect the disclosure of related party transactions.

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

2019 ◽  
Vol 20 ◽  
pp. 81-92 ◽  
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.

Political Connections and Related Party Transactions: Evidence from Indonesia

2017 ◽  
Vol 52 (1) ◽  
pp. 45-63 ◽  
Author(s):  
Ahsan Habib ◽  
Abdul Haris Muhammadi ◽  
Haiyan Jiang
Keyword(s):  
Political Connections ◽  
Related Party Transactions

scholarly journals The effect of political connections on companies’ performance and value

2018 ◽  
Vol 8 (2) ◽  
pp. 185-204 ◽  
Author(s):  
Anis Maaloul ◽  
Raïda Chakroun ◽  
Sabrine Yahyaoui
Keyword(s):  
Emerging Economies ◽  
Stock Exchange ◽  
Financial Statements ◽  
Political Connections ◽  
Business Success ◽  
Minority Shareholders ◽  
Content Type ◽  
Market Values ◽  
The One ◽  
Practical Implications

Purpose The purpose of this paper is to examine the effect of companies’ political connections (PCs) on their financial and stock performance, as well as on their market values. Design/methodology/approach A sample of non-financial companies listed on the Tunis Stock Exchange (TSE) between 2012 and 2014 was used. The accounting and financial data of these companies were obtained from their financial statements, whereas data on PCs of their officers and directors were collected manually from various sources. Correlation and multivariate regression analyses were performed to test the hypothesis of this research. Findings The results showed that PCs improve companies’ performance and value. These results could be explained, on the one hand, by the benefits and favors that companies can get from their political ties and, on the other hand, by investors’ tendency to invest in politically connected companies to benefit from these advantages. Research limitations/implications The limited number of non-financial companies listed on the TSE is a limit for this research. Practical implications The results show that investment in companies which are politically inter-connected may be beneficial for investors, and especially for small minority shareholders. Social implications The results confirm that political links are essential for business success in emerging economies, such as Tunisia. However, the positive link between politics and business might highlight the issue of corruption after the revolution. Originality/value To the best of the authors’ knowledge, this is the first study to examine the effect of PCs on the performance and value of Tunisian companies after the 2011 revolution.

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

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.

scholarly journals PENGARUH KONEKSI POLITIK, INTENSITAS ASET TETAP, KOMISARIS INDEPENDEN, PROFITABILITAS DAN LEVERAGE TERHADAP TAX AVOIDANCE

2021 ◽  
Vol 5 (1) ◽  
pp. 14-30
Author(s):  
Sahrir Sahrir ◽  
Sofyan Syamsuddin ◽  
Sultan Sultan
Keyword(s):  
Banking Sector ◽  
Stock Exchange ◽  
Research Result ◽  
Tax Avoidance ◽  
Secondary Data ◽  
Financial Statements ◽  
Political Connections ◽  
Analysis Technique ◽  
Fixed Assets ◽  
Tax Payments

Tax avoidance is a business that is conducted legally by the company by utilizing existing loopholes in the tax regulations with the aim of minimizing or even avoiding tax payments. This research aimed to know and analyze the effect of political connections, fixed assets intensity, independent commissioners, profitability and leverage to tax avoidance. The method used is quantitative, where the data used is secondary data formed as financial statements of banking sector companies listed on the Indonesia Stock Exchange for the period 2014-2018. The sample determination used purposive sampling, so obtained financial statements that meet the research criteria of 172 observations. The data analysis technique used multiple linier regression analysis. The research result showed that political connections, fixed assets intensity, profitability and leverage affected to the tax avoidance. While independent commissioners is not affected to the tax avoidance

scholarly journals Pengaruh Fraud Hexagon Model Terhadap Fraudulent Laporan Keuangan pada Perusahaan Sub Sektor Makanan dan Minuman yang Terdaftar di BEI Tahun 2016-2019

2021 ◽  
Vol 13 (2) ◽  
pp. 245-259
Author(s):  
Samuel Gevanry Sagala ◽  
Valentine Siagian
Keyword(s):  
Financial Stability ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Secondary Data ◽  
Financial Statements ◽  
Annual Reports ◽  
Political Connections ◽  
Manufacturing Companies ◽  
Food And Beverage ◽  
Fraudulent Financial Statements

Abstract This study aims to determine the effect of the fraud hexagon model, namely pressure (stimulus) which is proxied by financial targets and financial stability, capabilities that are proxied by changes in directors, opportunities proxied by ineffective monitoring, rationalization proxied by change in auditors, arrogance proxied by frequent number of CEO's picture, and collusion proxied by government projects, political connections and state-owned enterprises to fraudulent financial statements. The sample of this study is the food and beverage sub sector manufacturing companies listed on the Indonesia Stock Exchange (IDX) in 2016-2019. This study uses secondary data, namely financial reports and annual reports. Based on the purposive sampling method, the number of companies sampled in this study was 18 companies from a total of 32 companies registered and analyzed by multiple linear regression analysis using the SPSS 25 program. The results of this study found that the elements of pressure that are proxied by financial targets and financial stability had a significant effect on fraudulent financial statements. Meanwhile, change of directors, ineffective monitoring, change in auditors, frequent number of CEO's pictures, government projects, political connections and state-owned enterprises have no significant effect on fraudulent financial statements in food and beverage sub sector manufacturing companies listed on the IDX in 2016- 2019. Keywords: Fraudulent Financial Statement, and Fraud Hexagon Model

Political connections and audit report lag: Indonesian evidence

2018 ◽  
Vol 26 (1) ◽  
pp. 59-80 ◽  
Author(s):  
Ahsan Habib ◽  
Abdul Haris Muhammadi
Keyword(s):  
Large Body ◽  
Least Square ◽  
Political Connections ◽  
Audit Report ◽  
Financial Reports ◽  
Content Type ◽  
Related Party Transactions ◽  
Ordinary Least Square ◽  
Ordinary Least Square Regression ◽  
The Impact

Purpose This paper aims to investigate the association between political connections and the audit report lag and whether related party transactions moderate the association between the two. Design/methodology/approach An ordinary least square regression is estimated whereby audit report lag is regressed on political connections, related party transactions and the interaction between the two. Data on the number and amounts of RPTs are hand-collected from audited financial reports. A firm-year observation is politically connected if at least one large shareholder (controlling at least 10 per cent of the votes directly or indirectly) or board member or commissioner is a current or former Member of Parliament, a minister or head of local government or closely related to a politician or party. Findings Findings show that the audit report lag is relatively short for politically connected firms but increases when such firms conduct both operating and loan-type related party transactions. This suggests that auditors understand the incentives for, and the implications of, related party transactions and hence exert additional audit efforts in scrutinizing financial statements: activities that will increase the audit report lag. Originality/value Although a large body of empirical research exists on the determinants of audit report lag, none has examined the impact of political connections. This paper further contributes to the auditing literature by documenting auditors’ evaluation of related party transactions in a developing country.

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