The impact of product market competition on transactions with related parties and company performance

Abstract: This paper presents an empirical investigation on the effect of product market competition on transactions with related parties and company performance. The study selects a sample of 250 randomly selected firms whose common shares were traded on Tehran Stock Exchange. The study uses Herfindahl-Hirschman Index (HHI) to measure the market concentration and uses historical information over the period 2008-2012 to examine the hypotheses of the survey. Using simple regression analysis, the study has detected a positive relationship between HHI and related party transactions. In addition, the study has detected a negative relationship between competition and company performance measured by return on assets.

How to cite this paper

 Asadi, M., Nouralahzadeh, N & Hamidian, M. (2015). The impact of product market competition on transactions with related parties and company performance.Management Science Letters , 5(3), 289-294.

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