Marsellisa Nindito1, Ilya Afianti2, Poppy Sofia Koeswayo2 and Nanny Dewi Tanzil2
This study investigates the impact of related-party transactions on financial statement fraud in the Indonesian publicly listed firms grounded in agency theory. The research study is aimed at examining the need for good corporate governance in order to uphold reporting integrity. This research applies a quantitative approach and a sample of 500-unit data from the companies listed on the Indonesian Stock Exchange in the period from 2017 to 2019 is analyzed using logistic regression models. This study also utilizes moderating regression analysis so as to investigate the moderating roles of institutional ownership and independent commissioners in the research model. The study results have revealed that related-party transactions and institutional ownership significantly affect the likelihood of the financial statement fraud occurrence in Indonesia and that institutional ownership can moderate the impact of related-party transactions on the likelihood of the financial statement fraud occurrence. This study provides the empirical evidence on the role of related-party transactions and corporate governance in shaping the quality of financial statements in emerging economies.
Mustafa Kevser and Bilge Leyli Elitaş
The aim of this study is to analyze the effects of the ownership structures of banks on their financial performance. The quarterly data of the 13 banks listed on the Istanbul Stock Exchange (BIST) were used for the period from 2005 to 2017. In the study, return on assets (ROA), return on equity (ROE), Tobin’s Q ratio (TOBIN), earnings per share (EPS) and the price/earnings ratio (P/E) were used for the financial performance indicators. Family ownership, corporate ownership, managerial ownership, foreign ownership, the largest shareholder’s ownership, the ownership of the three largest shareholders, and the free-float rate were selected as the independent variables for the study. The leverage ratio, the total assets and the age of the banks were benefited from as the control variables. There are five models formed to analyze the relationship between the variables, and a regression analysis was carried out. The analyses point out the fact that the ownership structures of the banks have an effect on their financial performance. Besides, the results obtained by these analyses are suggested to be coherent for the agency theory as one of the fundamental theories of this subject.