REVENUES FROM RELATED PARTIES: A RISK FACTOR IN ITALIAN LISTED COMPANY FINANCIAL STATEMENTS

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Fabrizio Bava ORCID logo, Melchior Gromis di Trana ORCID logo

https://doi.org/10.22495/cocv13i1c2p4

Abstract

In recent decades, related party transactions (RPTs) have played a prime role in major corporate scandals, obliging regulators to strengthen the rules with new bans and expensive requirements on companies. This study aims to contribute to the literature on RPTs, providing evidence to justify increasingly expensive and mandatory regulation. Results show that the intensity of related party revenues increases where a company has lost profitability as well as turnover.

Keywords: Related Party Transactions, Conflict of Interests, Profitability, Revenues

How to cite this paper: Bava, F., Gromis di Trana, M. (2015). Revenues from related parties: A risk factor in Italian listed company financial statements. Corporate Ownership & Control, 13(1-2), 254-265. https://doi.org/10.22495/cocv13i1c2p4