Related Party Transactions (RPTs): A review of literature

Abstract

The global financial crisis has had an impact on the financial sector and the economy in various countries around the world. For long-term survival, the company conducts transactions with related parties. Related party transactions are transactions made by the company to affiliated parties. The purpose of this paper is to synthesize a variety of literature on Related Party Transactions (RPTs). The method used is to provide a review of literature published in international journals indexed by Scopus. From the results of previous research, there is evidence that related party transactions affect the company's value, earnings quality, earnings management and firm’s performance.