An Examination of the Influence of Related Party Transactions on Corporate Performance: Empirical Findings from the NSE 500 Index (2012-2020)

Abstract

This study examines the NSE 500 Index in India from 2012 to 2020 and finds that the Total Income from Related Party Transactions (RPTs) has a significant negative effect on business performance. Furthermore, company performance was not significantly affected by the total expenses and total income from RPTs. Furthermore, this study investigated the moderating impacts of Total Assets on the influence of RPTs on firm performance. This study is one of the early investigations of the characteristics of RPTs and their influence on business performance.