Variable dependent |
Total value RPTs |
RPTs |
Log (RPTs) company/year. |
Matos and Galdi (2014Matos, Oscar Miguel da Silva Pinto, and Fernando Caio Galdi. 2014. “O Impacto Das Transações Com Partes Relacionadas Na Performance Operacional Das Companhias Listadas Na Bm&Fbovespa.” Contabilidade Vista & Revista 25 (2): 84-97.); Silveira, Prado, and Sasso (2008Silveira, Alexandre Di Miceli da, Viviane Muller Prado, and Rafael Sasso. 2008. “Transações Com Partes Relacionadas: Estratégias Jurídicas e Relação Com a Governança Corporativa e Valor Das Empresas No Brasil.” Estudos Em Governança Corporativa, 1-73.) |
Variables independents |
Deviation |
DEV |
Log Deviation=VR¹ - CFR² |
Aldrighi (2014Aldrighi, Dante Mendes. 2014. “Concentração Da Propriedade Do Capital e Controle Das Empresas No Brasil.” XIV Encontro Brasileiro de Finanças. XIV Encontro Brasileiro de Finanças.); Aldrighi, Postali, and Diaz (2018) |
+ |
Return on assets |
ROA |
ROA =
|
Maheshwari and Gupta (2018Maheshwari, Yogesh, and Pankaj Gupta. 2018. “Ownership Structures and Effects of Related Lending and Loan Guarantees on Firm Performance in Business Groups.” Asian Journal of Accounting and Governance 9: 77-86. https://doi.org/10.17576/ajag-2018-09-07. https://doi.org/10.17576/ajag-2018-09-07...
); Wang, Cho, and Lin (2019Wang, Hong Da, Chia Ching Cho, and Chan Jane Lin. 2019. “Related Party Transactions, Business Relatedness, and Firm Performance.” Journal of Business Research 101 (January): 411-25. https://doi.org/10.1016/j.jbusres.2019.01.066. https://doi.org/10.1016/j.jbusres.2019.0...
) |
+ or - |
Tobin’s Q |
QT |
|
Bona-Sánchez, Fernández-Senra, and Pérez-Alemán (2017Bona-Sánchez, Carolina, Carmen Lorena Fernández-Senra, and Jerónimo Pérez-Alemán. 2017. “Related-Party Transactions, Dominant Owners and Firm Value.” BRQ Business Research Quarterly 20 (1): 4-17. https://doi.org/10.1016/j.brq.2016.07.002. https://doi.org/10.1016/j.brq.2016.07.00...
); Maheshwari and Gupta (2018Maheshwari, Yogesh, and Pankaj Gupta. 2018. “Ownership Structures and Effects of Related Lending and Loan Guarantees on Firm Performance in Business Groups.” Asian Journal of Accounting and Governance 9: 77-86. https://doi.org/10.17576/ajag-2018-09-07. https://doi.org/10.17576/ajag-2018-09-07...
) |
New Market³ |
NM |
Dummy, where 1 indicates the firms listed on the New Market and 0 otherwise. |
Aldrighi, Postali, and Diaz (2018Aldrighi, Dante Mendes, Fernando Antonio Slaibe Postali, and Maria Dolores Montoya Diaz. 2018. “Corporate Governance and Pyramidal Ownership: The Role of Novo Mercado.” Brazilian Review of Finance 16 (1): 5-38.) |
- |
Big Four
|
Big4 |
Dummy, where 1 indicates that the company is audited by one of Big 4; 0 otherwise. |
Bhuiyan and Roudaki (2018Bhuiyan, Md Borhan Uddin, and Jamal Roudaki. 2018. “Related Party Transactions and Finance Company Failure: New Zealand Evidence.” Pacific Accounting Review 30 (2): 199-221. https://doi.org/10.1108/PAR-11-2016-0098. https://doi.org/10.1108/PAR-11-2016-0098...
); Rahmat, Mohd Amin, and Mohd Saleh (2018Rahmat, Mohd Mohid, Hanis Amera Mohd Amin, and Norman Mohd Saleh. 2018. “Controlling Shareholders’ Proxy and Multiple Directorships: Insight Evidence from Related Party Transactions.” Asian Journal of Accounting and Governance 9: 27-40. https://doi.org/10.17576/ajag-2018-09-03. https://doi.org/10.17576/ajag-2018-09-03...
). |
Audit committee4
|
AuditCom |
Dummy, where 1 indicates if the majority of the members of the audit committee are independent; 0 otherwise. |
Kang et al., (2014Kang, Minjung, Ho Young Lee, Myung Gun Lee, and Jong Chool Park. 2014. “The Association between Related-Party Transactions and Control-Ownership Wedge: Evidence from Korea.” Pacific Basin Finance Journal 29: 272-96. https://doi.org/10.1016/j.pacfin.2014.04.006. https://doi.org/10.1016/j.pacfin.2014.04...
); Rahmat, Mohd Amin, and Mohd Saleh (2018Rahmat, Mohd Mohid, Hanis Amera Mohd Amin, and Norman Mohd Saleh. 2018. “Controlling Shareholders’ Proxy and Multiple Directorships: Insight Evidence from Related Party Transactions.” Asian Journal of Accounting and Governance 9: 27-40. https://doi.org/10.17576/ajag-2018-09-03. https://doi.org/10.17576/ajag-2018-09-03...
). |
Control variables |
Size |
Size |
Logarithm of net sales. |
Kang et al. (2014Kang, Minjung, Ho Young Lee, Myung Gun Lee, and Jong Chool Park. 2014. “The Association between Related-Party Transactions and Control-Ownership Wedge: Evidence from Korea.” Pacific Basin Finance Journal 29: 272-96. https://doi.org/10.1016/j.pacfin.2014.04.006. https://doi.org/10.1016/j.pacfin.2014.04...
) |
+ |
Leverage |
LEV |
|
Aldrighi, Postali, and Diaz (2018Aldrighi, Dante Mendes, Fernando Antonio Slaibe Postali, and Maria Dolores Montoya Diaz. 2018. “Corporate Governance and Pyramidal Ownership: The Role of Novo Mercado.” Brazilian Review of Finance 16 (1): 5-38.); Maheshwari and Gupta (2018Maheshwari, Yogesh, and Pankaj Gupta. 2018. “Ownership Structures and Effects of Related Lending and Loan Guarantees on Firm Performance in Business Groups.” Asian Journal of Accounting and Governance 9: 77-86. https://doi.org/10.17576/ajag-2018-09-07. https://doi.org/10.17576/ajag-2018-09-07...
) |
+ or - |
Tangibility |
TANG |
|
Aldrighi, Postali, and Diaz (2018Aldrighi, Dante Mendes, Fernando Antonio Slaibe Postali, and Maria Dolores Montoya Diaz. 2018. “Corporate Governance and Pyramidal Ownership: The Role of Novo Mercado.” Brazilian Review of Finance 16 (1): 5-38.); Souza and Bortolon (2014Souza, João Antônio Salvador, and Patrícia Maria Bortolon. 2014. “Transações Com Partes Relacionadas: Determinantes e Impactos No Desempenho Das Empresas.” XIV Encontro Brasileiro de Finanças: XIV Encontro Brasileiro de Finanças.) |
Foreign capital |
FC |
Dummy, where 1 indicates ordinary and/or preferred shares owned by foreign capital; 0 otherwise. |
Cheung et al. (2009Cheung, Yan Leung, Yuehua Qi, P. Raghavendra Rau, and Aris Stouraitis. 2009. “Buy High, Sell Low: How Listed Firms Price Asset Transfers in Related Party Transactions.” Journal of Banking and Finance 33 (5): 914-24. https://doi.org/10.1016/j.jbankfin.2008.10.002. https://doi.org/10.1016/j.jbankfin.2008....
) |
+ |
Sector Fixed effects |
Dummies, where 1 indicates the sector; 0 otherwise |
Bona-Sánchez, Fernández-Senra, and Pérez-Alemán (2017Bona-Sánchez, Carolina, Carmen Lorena Fernández-Senra, and Jerónimo Pérez-Alemán. 2017. “Related-Party Transactions, Dominant Owners and Firm Value.” BRQ Business Research Quarterly 20 (1): 4-17. https://doi.org/10.1016/j.brq.2016.07.002. https://doi.org/10.1016/j.brq.2016.07.00...
) Kang et al. (2014Kang, Minjung, Ho Young Lee, Myung Gun Lee, and Jong Chool Park. 2014. “The Association between Related-Party Transactions and Control-Ownership Wedge: Evidence from Korea.” Pacific Basin Finance Journal 29: 272-96. https://doi.org/10.1016/j.pacfin.2014.04.006. https://doi.org/10.1016/j.pacfin.2014.04...
) |
Temporal Fixed effects |
Dummies, where 1 indicates the year; 0 otherwise |
|
|