Open AccessBank Recapitalisation Announcement: A Comparative Study of Select Public and Private Banks
Author(s) -
Rajit Verma,
Kulwant Kumar Sharma
Publication year - 2018
Publication title -
mudra : journal of finance and accounting
Language(s) - English
Resource type - Journals
eISSN - 2395-2598
pISSN - 2347-4467
DOI - 10.17492/mudra.v5i2.14432
Subject(s) - business , panel data , corporate governance , sample (material) , stock exchange , accounting , principal (computer security) , financial system , finance , economics , econometrics , chemistry , chromatography , computer science , operating system
Research on examining the relationship between the extent of related party transactions (RPTs) and the firm performance lack consensus. To further investigate this relationship, we use data of a sample of 483 Indian companies listed at National Stock Exchange (NSE) for the period 2013-2017. Based on analysis of data using panel regression, we observe that different forms of RPTs - income, expenses, borrowings and Loans, bank guarantee - do not lead to enhancement of the firm performance. However, the income from related parties are found to be negatively associated with firm performance. This is consistent with the hypothesis of principal-principal or manager conflict in corporate governance.