Negative Entrenchment Effect of Business Group Conglomerates on Selling and Purchasing Related Party Transactions
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Keywords

business group conglomerates
negative entrenchment effect
selling and purchasing related party transaction
ultimate owner.

How to Cite

Ayuningtyas, D., & Diyanty, V. (2017). Negative Entrenchment Effect of Business Group Conglomerates on Selling and Purchasing Related Party Transactions. Journal of Economics, Business, & Accountancy Ventura, 19(3), 415-426. https://doi.org/10.14414/jebav.v19i3.480

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.

References

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