Related Party Transactions and Corporate Governance in Business Group: Evidence from Indonesia

This paper aims to offer new evidence as how sub-related party transactions (RPTs) can be related corporate governance for Indonesia's business group. We address an ongoing theoretical tension and some recent research in the RPTs literature by focusing on revenue, expenses, loans, receivables. Business groups are classified size or market capitalization. examines whether group relate with domestic/foreign shareholders, independent board/commissioner, firm controlling factors. The wereselected through purposive sampling that met analysis criteria their typology population of listed IDX. used panel data four models. relationship is more pronounced than firms highly concentrated foreign ownership regarding effect Related variable, shows a significant every sub RPTs. results may imply exploits Indonesia expenses such cross-border capital goods, intangible property (royalty), intra-firm services, cost debt. Therefore, there need balanced interest government via directinvestment implementation adaptive regulation.