Does Corporate Governance Matter? Evidence from Related Party Transactions in Malaysia
This chapter investigates the relationship between related party transactions (RPTs), corporate governance, and firm performance. Specifically, this chapter examines the moderating effect of corporate governance on the RPTs–performance relationship. On the basis of 448 firm-year sample for 2005–2007...
| Main Authors: | , , , |
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| Format: | Book Chapter |
| Published: |
Elsevier
2011
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| Subjects: | |
| Online Access: | http://hdl.handle.net/20.500.11937/23572 |
| _version_ | 1848751188462272512 |
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| author | Abdul Wahab, Effiezal Aswadi Hasnah, H. Lok, C. Yahya, S. |
| author_facet | Abdul Wahab, Effiezal Aswadi Hasnah, H. Lok, C. Yahya, S. |
| author_sort | Abdul Wahab, Effiezal Aswadi |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | This chapter investigates the relationship between related party transactions (RPTs), corporate governance, and firm performance. Specifically, this chapter examines the moderating effect of corporate governance on the RPTs–performance relationship. On the basis of 448 firm-year sample for 2005–2007, we find evidence that related transactions are detrimental to shareholders and thus reducing firm performance. However, the negative effect is mitigated with the presence of good governance, namely level of board independence and executive remuneration. Furthermore, we find auditor size as an external governance mechanism could also reduce the negative impact of RPTs. |
| first_indexed | 2025-11-14T07:48:45Z |
| format | Book Chapter |
| id | curtin-20.500.11937-23572 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T07:48:45Z |
| publishDate | 2011 |
| publisher | Elsevier |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-235722017-09-13T13:59:02Z Does Corporate Governance Matter? Evidence from Related Party Transactions in Malaysia Abdul Wahab, Effiezal Aswadi Hasnah, H. Lok, C. Yahya, S. Corporate governance MCCG related party transactions This chapter investigates the relationship between related party transactions (RPTs), corporate governance, and firm performance. Specifically, this chapter examines the moderating effect of corporate governance on the RPTs–performance relationship. On the basis of 448 firm-year sample for 2005–2007, we find evidence that related transactions are detrimental to shareholders and thus reducing firm performance. However, the negative effect is mitigated with the presence of good governance, namely level of board independence and executive remuneration. Furthermore, we find auditor size as an external governance mechanism could also reduce the negative impact of RPTs. 2011 Book Chapter http://hdl.handle.net/20.500.11937/23572 10.1108/S1569-3732(2011)0000014009 Elsevier restricted |
| spellingShingle | Corporate governance MCCG related party transactions Abdul Wahab, Effiezal Aswadi Hasnah, H. Lok, C. Yahya, S. Does Corporate Governance Matter? Evidence from Related Party Transactions in Malaysia |
| title | Does Corporate Governance Matter? Evidence from Related Party Transactions in Malaysia |
| title_full | Does Corporate Governance Matter? Evidence from Related Party Transactions in Malaysia |
| title_fullStr | Does Corporate Governance Matter? Evidence from Related Party Transactions in Malaysia |
| title_full_unstemmed | Does Corporate Governance Matter? Evidence from Related Party Transactions in Malaysia |
| title_short | Does Corporate Governance Matter? Evidence from Related Party Transactions in Malaysia |
| title_sort | does corporate governance matter? evidence from related party transactions in malaysia |
| topic | Corporate governance MCCG related party transactions |
| url | http://hdl.handle.net/20.500.11937/23572 |