The effect of related party transactions on R&D investment: Evidence from Korea

This study aims to investigate the relationship between related party transactions and a firm’s investment in research development (R&D), as well moderating effect of financial health on such relationship. The applies fixed-effect panel regression model with sample 13,619 Korean listed firms for period from 2001 2020. results indicate that significantly positively influence R&D at 1% level period. Specifically, when are divided into operating non-operating, show only non-operating affect firms’ R&D. Moreover, findings report is stronger distress, lower cash holdings, high-tech industry. imply promote investment, which one primary business investments create competitive advantage value. propose should be carefully evaluated accessing behavior.