Related party and corporate governance: the role of business group affiliation

Abstract

Related party transactions, which have an important place in corporate governance, occur between firms and their related parties. Related party, which can be an owner, a director, a subsidiary, or a partner, is the body that influences the processes of transacting parties. One of the main parties in the framework of transactions is the subsidiaries of firms. Subsidiaries have an important role in the functioning and governance of parent firms. Moreover, in emerging economies, the affiliation of parent firms to a business group may also affect the relationships between subsidiaries, which are considered related parties, and corporate governance. However, in relevant literature, whether these subsidiaries as a related party affect the corporate governance of the parent firms and whether affiliation with a business group affects the relation between related parties and corporate governance has not sufficiently been addressed. The aim of this paper is to investigate the influence of related party in the form of subsidiaries on the corporate governance of the parent firm and the moderating role of group affiliation in the relation between related party and corporate governance. In this study, data obtained from the 2021 reports of 381 firms on the Public Disclosure Platform is used. The results of the regression analysis indicate that related party has a positive impact on corporate governance. However, affiliation negatively moderates the association between related party and corporate governance. This research seeks to advance the prior work on corporate governance by considering the relations between a related party, group affiliation and corporate governance in an emerging economy.

Keywords

• Related party
• subsidiary
• corporate governance
• business group affiliation
• emerging economy

İlişkili taraf ve kurumsal yönetim: işletme grubuna bağlılığın rolü

Abstract

Kurumsal yönetimde önemli bir yere sahip olan ilişkili taraf işlemleri, firmalar ve bu firmaların ilişkili tarafları arasında gerçekleşmektedir. İlişkili taraf, sahip, yönetici, bağlı firma veya ortak olabilen, işlem yapan tarafların süreçlerini etkileyen organdır. İlişkili taraf işlemleri çerçevesinde başlıca taraflardan biri firmaların bağlı ortaklıklarıdır. Bağlı ortaklıklar ana firmaların işleyişinde ve kurumsal yönetiminde önemli bir role sahiptir. Ayrıca, gelişmekte olan ekonomilerde ana firmaların bir işletme grubuna bağlılığı, ilişkili taraf olarak kabul edilen bağlı ortaklıklar ve kurumsal yönetim arasındaki ilişkileri de etkileyebilmektedir. Bağlı ortaklıkların ana firma ile ilişkileri yazında vurgulanmasına rağmen, ilişkili taraf olan bu bağlı ortaklıkların ana firmaların kurumsal yönetimini etkileyip etkilemediği yeterince araştırılmamıştır. Buna ek olarak, bir işletme grubuna bağlılığın ilişkili taraf ile kurumsal yönetim arasındaki ilişkiyi etkileme durumu yeterince incelenmemiştir. Bu çalışmanın amacı, bağlı ortaklık seklindeki ilişkili tarafın, ana firmaların kurumsal yönetimi üzerindeki etkisini ve işletme gruplarına bağlılığın bu etkideki düzenleyici rolünü incelemektedir. Bu çalışmada, Kamuyu Aydınlatma Platformu’ndaki 381 firmanın 2021 yılı raporlarından elde edilen veri kullanılmıştır. Çalışmada regresyon analizi sonuçlarına göre, bağlı ortaklık biçimindeki ilişkili taraf firmaların kurumsal yönetimi üzerinde olumlu bir etki yapmaktadır. Ancak, gruba bağlılığın, ilişkili taraf ve kurumsal yönetim arasındaki ilişkide negatif düzenleyici etkisinin olduğu gözlemlenmiştir. Bu çalışma, gelişmekte olan bir ekonomide, bağlı ortaklıklar, firmaların kurumsal yönetime uyumları ve işletme grubuna bağlılık arasındaki ilişkileri inceleyerek kurumsal yönetim ile ilgili yazını ilerletmeyi amaçlamaktadır.

Keywords

• İlişkili taraf
• bağlı ortaklık
• kurumsal yönetim
• işletme grubuna bağlılık
• gelişmekte olan ekonomiler

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