Authors:

Raihan Ramadhani, Yossi Diantimala, Muhammad Arfan

Abstract:

“This study examines the effect of trust and related party transactions on firm value. The total observation in this study is 185 banking companies listed on the Indonesia Stock Exchange for the 2016-2020 period. Multivariate analysis is employed to test the hypothesis. The results illustrate that the trust and related party transactions have a positive and significant effect on firm value. This implies that the disclosure of the word ‘trust’ in the management discussion and analysis report (MD&A) reflects that the company’s ethical culture and good management responsibility in managing the business convince investors to invest. The increase in debt-related party transactions shows that it is easier for the companies to receive funding to finance the company’s operational activities and increase investment rather than making loans with the third parties which seems to be complicated to approach. Keywords: trust, related party transactions, firm value, MD&A”

Keywords

trust, related party transactions, firm value, MD&A

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PDF:

https://jurnal.harianregional.com/jiab/full-87027

Published

2022-07-27

How To Cite

RAMADHANI, Raihan; DIANTIMALA, Yossi; ARFAN, Muhammad. The Effect of Trust and Related Party Transaction on Firm Value.Jurnal Ilmiah Akuntansi dan Bisnis, [S.l.], v. 17, n. 2, p. 333-344, july 2022. ISSN 2303-1018. Available at: https://jurnal.harianregional.com/jiab/id-87027. Date accessed: 28 Aug. 2025. doi:https://doi.org/10.24843/JIAB.2022.v17.i02.p10.

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Issue

Vol 17 No 2 (2022)

Section

Articles

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