Abstract:
The present article examined the relationship between related party transaction and abnormal stock returns.. The methodology was based on the application of panel data and testing the hypotheses through the analysis of multiple regression. The results obtained from 71 companies listed on TehranSecurities Exchange from 2007 to 2013 represented a significant negative relationship between related party transaction and abnormal returns.
Machine summary:
"The results obtained from71 companies listed on TehranSecurities Exchange from 2007 to 2013 represented asignificant negative relationship between related party transaction and abnormal returns.
The present research study aimed to answer the questions "Can managers use related party transaction to earn abnormal returns?" and "Do related party transactions confirm the hypothesis of a conflict of interest?" LiteratureReview Related Party Related party refers to those one of whom could remarkably influence major financial and operational decisions of the other party directly or indirectly; or both are under common control or significant influence of a third party, so that, the independent interests of one is influenced by the other's in a transaction.
The results revealed that after the approval of new disclosure obligations, the UCT Journal of Management Research and Social Sciences Studiesearnings value coefficient reduced for companies vending the inventory to related parties.
Research Hypotheses To answer the research questions, the following hypotheses have been developed: H1: There is a statistically significant relationship between related party transactions and the company's abnormal stock returns.
Results of the hypothesis:Case Description Hypothesis reviews The hypothesis Question assumptions Is there any statistically significant relationship between related party transactions and abnormal stock returns?
Target hypothesis Investigating whetherthere is any statistically significant relationship between related party transactions and abnormal stock returns.
0 0 0 The results of research There is a significant negative correlation between related party transaction and abnormal stock returns."