الفهرس 
Examining the Association among Related Party Transactions, Family Ownership, and Earnings Management in Egyptian Listed Companies : An Empirical Study
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Abstract
Lecturer of Accounting, Faculty of Commerce, Cairo University
2022
Abstract
The main purpose of this research is examining the effect of related party
transactions (RPTs) and family ownership (FO) on earnings management (EM).
Moreover, this research aims to investigate the moderating effect of family
ownership on the association between RPTs and EM.
Data was collected from 58 Egyptian firms listed in the Egyptian stock market.
The research sample covers a period of five years from 2016 to 2020. A fixed effect
model (FEM) regression is employed to test the research hypotheses. Accrual-based
EM is measured by using discretionary accruals estimated by modified Jones model.
RPTs are measured by scaling total amount of RPTs to total assets to indicate
whether such transactions represent 1% of total assets or not. Percentage of shares
held by family members is used to measure FO.
The results reveal that there is a significant negative association between RPTs
and accrual EM, suggesting that RPTs aren’t used opportunistically but used
efficiently to the advantage of the firm. Furthermore, the results show that there is a
negative association between FO and earnings management, implying that family
members tend to avoid risky behaviors such as EM to protect the firm’s name and
reputation. Finally, it is found that FO, as a regulatory corporate governance
mechanism, strengthens the negative association between RPTs and EM