Value Relevance, Earnings Management, and Related Party Transactions

DOI

10.2991/iac-17.2018.48How to use a DOI?

Keywords

Related party transactions; Abnormal Related Party Transactions; Value Relevance

Abstract

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.

Copyright

© 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/).

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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  - 10.2991/iac-17.2018.48
ID  - Nasution2017/08
ER  -