Internationalization, related party transactions, and firm ownership structure: Empirical evidence from an emerging market

Arpita Agnihotri, Saurabh Bhattacharya

Research output: Contribution to journalArticlepeer-review

18 Scopus citations

Abstract

This study seeks to understand the adverse impact of related party transactions (RPTs) on the internationalization of emerging economy firms. The study further explores how a firm's ownership structure moderates the relationship between RPT and internationalization. Based on a sample of 367 Indian manufacturing firms, the study finds that RPTs have a negative influence on internationalization. Business group ownership is found to strengthen the negative relationship between RPTs and internationalization, whereas foreign shareholding weakens this relationship.

Original languageEnglish (US)
Pages (from-to)340-352
Number of pages13
JournalResearch in International Business and Finance
Volume48
DOIs
StatePublished - Apr 2019

All Science Journal Classification (ASJC) codes

  • Business, Management and Accounting (miscellaneous)
  • Finance

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