Accounting and Auditing Research

Accounting and Auditing Research

Investigate for Relationship Between the Related Party Transactions and Financial Performance of the Companies Listed in Tehran Stock Exchange

Document Type : Original Article

Authors
Kambiz Forqandoost Haqiqi 1
Zahra Amirhosseini 2
Vahid Mehrazar 3
1 Assistant Professor of Accounting, Islamic Azad University Of Central Tehran Branch, Tehran, Iran
2 Assistant Professor of Accounting, Islamic Azad University, Shahr-e-Qods Branch, Iran
3 Master of Accounting, Islamic Azad University, Shahr-e-Qods Branch, Iran
10.22034/iaar.2022.151097
Abstract
Considering importance and position of the related party transactions in financial and accounting subject and direct & indirect impact of this Variable on many of financial Variable , in the present research , 107 Companies during 2011 to 2016 (tatally  using 642 years-Company) were selected and analyzed through systematic removal sampling method. The present study is applied type in View of data collection method. The independent Variable in the present study is the related party transactions and the dependent Variable is the Financial Performance. To review Financial Performance of companies , two indicators of Return on assets and Return on Equity were used. Moreover , the Variable of Volume of transactions, financial Leverage , size of Company and key share holders were Considered as control Variable. To verify research hypotheses , multivariable regression models were used and analized using Eviews 8 tools. The results obtained in this research indicate the related party transactions has a negative and sighnificant relation with Financial Performance of Companies (both indicators of Return on assets and Return on Equity). More importantly , it was found that the relation is stronger for Return on Equity.
Keywords
Related party transactions
Financial variables
Financial Performance
Return on Assets
Return on Equity
Accounting and Auditing Research
Volume 14, Issue 53
Spring 2022
Pages 25-46