The impact of related party transactions on firm value: evidence from a developing country

Ahmed Aboud, Ahmed Diab, Arafat Hamdy

    Research output: Contribution to journalArticlepeer-review

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    Abstract

    Purpose: The purpose of this study is to address the impact of the related party transactions (RPTs) on firm value. The authors bring evidence from a usually ignored empirical setting: an African emerging market.

    Design/methodology/approach: In particular, the authors focus on companies listed on the Egyptian stock market using a sample of EGX 30 from 2012 to 2017.

    Findings: Unlike the literature, the authors find no significant relationship between RPTs and market value.

    Practical implications: This research provides insights for policymakers and other interested parties concerning the perception of RPTs in Egypt.

    Originality/value: The reported different findings of this study assure the intermediary role of the context and the local culture in the relationship between RPTs and firm value, in contrast to the negative view that is mostly reported in the literature.
    Original languageEnglish
    Pages (from-to)571-588
    Number of pages18
    JournalJournal of Financial Reporting and Accounting
    DOIs
    Publication statusPublished - 2 Sept 2019

    Keywords

    • related party transactions
    • firm value
    • Egypt
    • context
    • emerging markets

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