{"id":{"repo_id":"ottawa-retro","oai_identifier":"oai:ruor.uottawa.ca:10393/42537"},"canonical_url":"https://search.dev.ndltd.org/etd/ottawa-retro/oai:ruor.uottawa.ca:10393/42537","repository":{"repo_id":"ottawa-retro","name":"University of Ottawa","base_url":"https://ruor.uottawa.ca/server/oai/request"},"display":{"title":"Related Party Transaction, Firm Performance and Institutional Ownership","abstract":"This paper investigates the impact of related party transactions on a firm’s operating performance and market-based performance, as well as the impact of institutional ownership on the use of related party transactions. Using a sample of 1218 deals from S&P1500 firms from 2007 to 2018, we propose and examine three relevant hypotheses: (a) related party transactions, especially, “Red-flag” related party transactions are negatively related to firm’s operating performance, (b) related party transactions, especially, “Red-flag” related party transactions are negatively related with firm’s marketbased performance, (c) institutional ownership is negatively related with related party transactions. In summary, we do not find a significant relationship between related party transactions and firm’s operating performance, such as ROA, Profit Margin and COGS. As for firm’s market-based performance, we found related party transactions are positively related with Tobin’s-Q, but are not significantly related with 12-months buy and hold abnormal return. Finally, we do not find any significant relationship between overall institutional investors and RPTs, but we find short-horizon institutional investors reduce the use of related party transactions, but long-horizon institutional investors do not limit the use of RPT","abstract_html":"This paper investigates the impact of related party transactions on a firm’s operating performance and market-based performance, as well as the impact of institutional ownership on the use of related party transactions. Using a sample of 1218 deals from S&P1500 firms from 2007 to 2018, we propose and examine three relevant hypotheses: (a) related party transactions, especially, “Red-flag” related party transactions are negatively related to firm’s operating performance, (b) related party transactions, especially, “Red-flag” related party transactions are negatively related with firm’s marketbased performance, (c) institutional ownership is negatively related with related party transactions. In summary, we do not find a significant relationship between related party transactions and firm’s operating performance, such as ROA, Profit Margin and COGS. As for firm’s market-based performance, we found related party transactions are positively related with Tobin’s-Q, but are not significantly related with 12-months buy and hold abnormal return. Finally, we do not find any significant relationship between overall institutional investors and RPTs, but we find short-horizon institutional investors reduce the use of related party transactions, but long-horizon institutional investors do not limit the use of RPT","abstract_has_math":false,"creators":["Cui, Jingyu"],"institution":"Université d'Ottawa / University of Ottawa","degree_name":null,"degree_level":null,"degree_discipline":null,"degree_department":null,"school":null,"contributors":["Dutta, Shantanu"],"advisors":[],"committee_chairs":[],"committee_members":[],"year":2021,"date_issued":"2021-08-13T17:47:35Z","date_published":"2021-08-13T17:47:35Z","updated_at":"2026-07-24T03:39:34Z","subjects":["Related Party Transaction","Firm Performance","Institutional Ownership"],"languages":["en"],"rights":[],"rights_urls":[],"identifier_entries":[{"key":"dc:identifier","label":"Identifier","values":["http://dx.doi.org/10.20381/ruor-26757"],"render_values":[{"text":"http://dx.doi.org/10.20381/ruor-26757","href":"http://dx.doi.org/10.20381/ruor-26757","code":true}]}]},"links":{"outbound_url":"http://hdl.handle.net/10393/42537","outbound_label":"Handle","outbound_source":"dc:identifier"},"metadata_groups":[{"id":"people","label":"People","entries":[{"key":"dc:contributor","label":"Contributor","values":["Dutta, Shantanu"]},{"key":"dc:creator","label":"Author","values":["Cui, Jingyu"]}]},{"id":"academic_context","label":"Academic Context","entries":[{"key":"dc:date","label":"Dc Date","values":["2021-08-13T17:47:35Z","2021-08-13"]},{"key":"dc:publisher","label":"Institution","values":["Université d'Ottawa / University of Ottawa"]},{"key":"dc:type","label":"Dc Type","values":["Thesis"]}]},{"id":"subjects_keywords","label":"Subjects and Keywords","entries":[{"key":"dc:subject","label":"Dc Subject","values":["Related Party Transaction","Firm Performance","Institutional Ownership"]}]},{"id":"language_rights","label":"Language and Rights","entries":[{"key":"dc:language","label":"Dc Language","values":["en"]}]},{"id":"identifiers","label":"Identifiers","entries":[{"key":"dc:identifier","label":"Identifier","values":["http://hdl.handle.net/10393/42537","http://dx.doi.org/10.20381/ruor-26757"]}]},{"id":"additional","label":"Additional Metadata","entries":[{"key":"dc:description","label":"Description","values":["This paper investigates the impact of related party transactions on a firm’s operating performance and market-based performance, as well as the impact of institutional ownership on the use of related party transactions. Using a sample of 1218 deals from S&P1500 firms from 2007 to 2018, we propose and examine three relevant hypotheses: (a) related party transactions, especially, “Red-flag” related party transactions are negatively related to firm’s operating performance, (b) related party transactions, especially, “Red-flag” related party transactions are negatively related with firm’s marketbased performance, (c) institutional ownership is negatively related with related party transactions. In summary, we do not find a significant relationship between related party transactions and firm’s operating performance, such as ROA, Profit Margin and COGS. As for firm’s market-based performance, we found related party transactions are positively related with Tobin’s-Q, but are not significantly related with 12-months buy and hold abnormal return. Finally, we do not find any significant relationship between overall institutional investors and RPTs, but we find short-horizon institutional investors reduce the use of related party transactions, but long-horizon institutional investors do not limit the use of RPT"]},{"key":"dc:format","label":"Dc Format","values":["application/pdf"]},{"key":"dc:title","label":"Title","values":["Related Party Transaction, Firm Performance and Institutional Ownership"]}]}],"canonical_facts":{"dc:contributor":["Dutta, Shantanu"],"dc:creator":["Cui, Jingyu"],"dc:date":["2021-08-13T17:47:35Z","2021-08-13"],"dc:description":["This paper investigates the impact of related party transactions on a firm’s operating performance and market-based performance, as well as the impact of institutional ownership on the use of related party transactions. Using a sample of 1218 deals from S&P1500 firms from 2007 to 2018, we propose and examine three relevant hypotheses: (a) related party transactions, especially, “Red-flag” related party transactions are negatively related to firm’s operating performance, (b) related party transactions, especially, “Red-flag” related party transactions are negatively related with firm’s marketbased performance, (c) institutional ownership is negatively related with related party transactions. In summary, we do not find a significant relationship between related party transactions and firm’s operating performance, such as ROA, Profit Margin and COGS. As for firm’s market-based performance, we found related party transactions are positively related with Tobin’s-Q, but are not significantly related with 12-months buy and hold abnormal return. Finally, we do not find any significant relationship between overall institutional investors and RPTs, but we find short-horizon institutional investors reduce the use of related party transactions, but long-horizon institutional investors do not limit the use of RPT"],"dc:format":["application/pdf"],"dc:identifier":["http://hdl.handle.net/10393/42537","http://dx.doi.org/10.20381/ruor-26757"],"dc:language":["en"],"dc:publisher":["Université d'Ottawa / University of Ottawa"],"dc:subject":["Related Party Transaction","Firm Performance","Institutional Ownership"],"dc:title":["Related Party Transaction, Firm Performance and Institutional Ownership"],"dc:type":["Thesis"]},"updated_at":"2026-07-24T03:39:34Z"}