Related-party transactions and corporate performance following the adoption of International Financial Reporting Standards in Taiwan
Date
2020-04-01
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Publisher
John Wiley and Sons Ltd.
Abstract
We explore the association between related-party transactions and the efficiency of Taiwanese electronics companies following the adoption of International Financial Reporting Standards (IFRS) for the period 2010–2018. Tests of differences in mean showed that the efficiency and related-party transactions of the sample companies were significantly lower in the post-IFRS era. Regression results indicated that related-party transactions have significantly positive effects on efficiency; however, this positive association turned out to be smaller following the adoption of IFRS in Taiwan. Overall, this study suggests that changing accounting policy and rules can significantly affect related-party transactions in companies, and ultimately corporate performance. © 2019 John Wiley & Sons, Ltd.
Description
This article is not available at CUD collection. The version of scholarly record of this article is published in Managerial and Decision Economics (2020), available online at: https://doi.org/10.1002/mde.3106.
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Keywords
IFRS, International Financial Reporting Standards, Conditional conservatism
Citation
Wang, W.-K., Lu, W.-M., Kweh, Q. L., & Siao, W.-Y. (2020). Related-party transactions and corporate performance following the adoption of International Financial Reporting Standards in Taiwan. Managerial and Decision Economics, 41(1), 371-379. https://doi.org/10.1002/mde.3106