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Philadelphia, USA |
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* Scientific Article * Impact Factor 6.630 |
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Oraka, A. O.
Effect of related-party transaction (RPT) on financial performance: evidence from Nigerian Conglomerate firms (2010-2019). |
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Full Article: PDF
Scientific Object Identifier: http://s-o-i.org/1.1/TAS-02-94-55
DOI: https://dx.doi.org/10.15863/TAS.2021.02.94.55
Language: English
Citation: Oraka, A. O. (2021). Effect of related-party transaction (RPT) on financial performance: evidence from Nigerian Conglomerate firms (2010-2019). ISJ Theoretical & Applied Science, 02 (94), 274-282. Soi: http://s-o-i.org/1.1/TAS-02-94-55 Doi: https://dx.doi.org/10.15863/TAS.2021.02.94.55 |
Pages: 274-282
Published: 28.02.2021
Abstract: This paper determined the effect of related-party transaction (RPT) on financial performance of Nigerian conglomerate firms. Ex Post Facto research design was adopted. The study selected five Nigerian Conglomerate firms using stratified random sampling and the simple random sampling method and obtained data using their audited annual accounts from 2010 to 2019. The formulated hypotheses were tested using Ordinary least square with E-view 9.0. The findings suggest that related party transactions do not has significant effect on earnings per share of conglomerate firms in Nigeria. Meanwhile related party transactions have significant influence in determining the Tobin Q of conglomerate firms in Nigeria. The study recommended that related party transactions however, should be minimized to avoid the likelihood of transgressing into a fraud opportunity for management.
Key words: Related-party transaction, Financial performance, Conglomerate firms.
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