Negative Entrenchment Effect of Business Group Conglomerates on Selling and Purchasing Related Party Transactions
Journal Title: Journal of Economics, Business, & Accountancy Ventura - Year 2016, Vol 19, Issue 3
Abstract
This study aims to explain the negative entrenchment effect arised from selling and purchasing related party transactions on business group conglomerates. This study is using 322 firm-year data of firms listed at Indonesia Stock Exchange in 2012-2013 period.This research provides evidence that the ownership by business conglomerates strengthened the negative entrenchment effect in both total of selling-purchasing related party transactions and selling-purchasing related party transactions which come from operating activities. Thus, from the result, it can be presumed that there might be a possibility of agency conflict arised from selling-purchasing related party transactions when a firm is part of business conglomerates.
Authors and Affiliations
Dayinta Ayuningtyas, Vera Diyanty
Keywords
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- EP ID EP470232
- DOI 10.14414/jebav.v19i3.480
- Views 60
- Downloads 0
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