The Impact of the Related Parties’ Transactions on Corporate Loan Cost: The Moderating Effects of Corporate Governance

• Main Authors: ZENG,LI-TING, 曾立婷
• Other Authors: CHEN,YU-FEN
• Format: Others
• Language: zh-TW
• Published: 2016
• Online Access: http://ndltd.ncl.edu.tw/handle/t4rrzd

碩士 === 大葉大學 === 企業管理學系碩士班 === 104 === Literature indicates that the blockholders transfer firm’s wealth through the related-party transactions so as to meet their own interests, which reduces firm’s performance as well as causes wealth loss of the small shareholders. Due to the negative impacts the related-party transactions may cause, this paper investigates whether firm’s related-party transactions affect corporate loan costs. The sample firms are those which are publicly listed and conduct related-party transactions. Forty-five banks made loans to the sample firms. The panel-data regression results indicate that the related-party sales as well as the related-party borrowing increase corporate loan costs. We further analyze whether board independence and institutional investors moderate the relationship between the related-party transactions and corporate loan costs. The results show that higher ratios of independent directors and institutional ownership weaken the relationship between the related-party transactions and corporate loan costs.