Korean Academic Society of Business Administration
[ Article ]
korean management review - Vol. 51, No. 6, pp.1513-1534
ISSN: 1226-1874 (Print)
Print publication date 31 Dec 2022
Received 08 Mar 2022 Revised 29 Apr 2022 Accepted 10 Jun 2022
DOI: https://doi.org/10.17287/kmr.2022.51.6.1513

특수관계자거래와 수익비용대응 수준 간의 관련성

Hyun Uk Jung ; Hyun Ju Lee
(First Author) Associate professor of School of Business, Dong-A University biglotos@dau.ac.kr
(Corresponding Author) Lecturer, Department of Accounting and Taxation, Yeungnam University hyunjulee0328@gmail.com
The Relation Between Related Party Transactions and Matching Level


Copyright 2011 THE KOREAN ACADEMIC SOCIETY OF BUSINESS ADMINISTRATION
This is an open access article distributed under the terms of the Creative Commons Attribution License 4.0, which permits unrestricted, distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract

We perform the empirical test after establishing a null hypothesis that related party transactions have no relation with the matching level. As a result of test, it is found that the high-proportion of related party transactions in both models increases the matching level. We also perform additional test to solve the problem of multicollinearity and autocorrelation that may appear in the empirical test models.

According to these results, domestic related party transactions act as an incentive to raise the matching level, and it is judged that related party transactions have a positive (+) relation with the matching level. This indicates that domestic related party transactions are made as a means of propping, and as a result, related party transactions are increasing the matching level of related companies.

This study contributes to presenting data that related party transactions can have a positive effect on the matching level in the results of mixed studies related to related party transactions. This study is the result of supporting the efficient transactions hypothesis among the conflicting theories related to related party transactions.

Keywords:

Related Party Transactions, Matching Level, Efficient Transactions Hypothesis, Propping

Acknowledgments

This work is supported by the Dong-A University research fund.

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∙ The author Hyun Uk Jung is currently an associate professor in the Department of Business Administration (Accounting) at Dong-A University Business School. I received my bachelor's, master's and doctoral degrees from Yeungnam University. I am majoring in Financial Accounting, and I am currently conducting research related to corporate governance and capital markets.

∙ The author Hyun Ju Lee is currently a lecturer in the Department of Accounting and Taxation at Yeungnam University Business School. I received my bachelor's, master's and doctoral degrees from Yeungnam University. I am majoring in Financial Accounting, and I am currently conducting research related to investment efficiency and corporate governance.