Related-party transactions and corporate performance following the adoption of International Financial Reporting Standards in Taiwan |
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| Authors: | Wei-Kang Wang Wen-Min Lu Qian Long Kweh Wun-Ya Siao |
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| Institution: | 1. Department of Accounting, Yuan Ze University, Chung-Li, Taiwan;2. Department of Financial Management, National Defense University, Taipei, Taiwan;3. Faculty of Management, Canadian University Dubai, Dubai, United Arab Emirates |
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| 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. |
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