Value Relevance, Earnings Management, and Related Party Transactions
- https://doi.org/10.2991/iac-17.2018.48How to use a DOI?
- Related party transactions; Abnormal Related Party Transactions; Value Relevance
This study investigates whether abnormal related party transactions as a proxy of earnings management reduce the value relevance of earnings announcements. Based on a sample of firms listed on the Indonesia Stock Exchange from 2010 through 2014, this study documents that listed firms in Indonesia conduct commercial transactions as a regular daily transaction with subsidiaries and affiliated firms which contribute to the firm’s reported earnings. This study finds that related party transactions are efficient and do not reduce the value relevance of earnings.
- © 2018, the Authors. Published by Atlantis Press.
- Open Access
- This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).
Cite this article
TY - CONF AU - Doli Martua Nasution AU - Aria Farah Mita PY - 2017/08 DA - 2017/08 TI - Value Relevance, Earnings Management, and Related Party Transactions BT - Proceedings of the 6th International Accounting Conference (IAC 2017) PB - Atlantis Press SP - 270 EP - 272 SN - 2352-5428 UR - https://doi.org/10.2991/iac-17.2018.48 DO - https://doi.org/10.2991/iac-17.2018.48 ID - Nasution2017/08 ER -