Negative Entrenchment Effect of business group conglomerates on selling and puchasing related party transaction

Dayinta Ayuningtyas, Vera Diyanty

Research output: Contribution to journalArticlepeer-review

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.
Original languageEnglish
Pages (from-to)415-426
JournalJournal of Economics, Business, and Accountancy Ventura
Volume19
Issue number3
DOIs
Publication statusPublished - 1 Mar 2017

Keywords

  • Business Group Conglomerates, Negative Entrenchment Effect, Selling and Purchasing Related Party Transaction, and Ultimate Owner.

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