A study on the relationship between related party transactions and monthly sales in Taiwan's publicly issued companies

Fengyi Lin; Chihyang Chang; Soushan Wu

doi:10.1080/10170660909509148

A study on the relationship between related party transactions and monthly sales in Taiwan's publicly issued companies

Fengyi Lin, Chihyang Chang^*, Soushan Wu

^*Corresponding author for this work

Department of Industrial and Business Management

National Taipei University of Technology

Research output: Contribution to journal › Journal Article › peer-review

3 Scopus citations

Abstract

This study utilizes VIKOR (VIšekriterijumsko KOmpromisno Rangiranje) method and five important financial features to analyze 100 publicly issued companies. Benford's law is applied to examine the relationship between net sales and related party transactions. According to the study results, joint application of VIKOR and Benford's law appears to be more applicable to identify the manipulation of corporate monthly sales than the use of Benford's law alone. VIKOR method, as we suggested in this paper, can therefore be adopted by relevant government agencies and auditors as an effective tool in uncovering financial crises of Taiwan stock market so as to provide more thorough protection to investors and creditors.

Original language	English
Pages (from-to)	337-343
Number of pages	7
Journal	Journal of the Chinese Institute of Industrial Engineers
Volume	26
Issue number	5
DOIs	https://doi.org/10.1080/10170660909509148
State	Published - 09 2009

Keywords

Benford's law
Earnings management
Related party transaction
Vikor method

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10.1080/10170660909509148

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abstract = "This study utilizes VIKOR (VI{\v s}ekriterijumsko KOmpromisno Rangiranje) method and five important financial features to analyze 100 publicly issued companies. Benford's law is applied to examine the relationship between net sales and related party transactions. According to the study results, joint application of VIKOR and Benford's law appears to be more applicable to identify the manipulation of corporate monthly sales than the use of Benford's law alone. VIKOR method, as we suggested in this paper, can therefore be adopted by relevant government agencies and auditors as an effective tool in uncovering financial crises of Taiwan stock market so as to provide more thorough protection to investors and creditors.",

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N2 - This study utilizes VIKOR (VIšekriterijumsko KOmpromisno Rangiranje) method and five important financial features to analyze 100 publicly issued companies. Benford's law is applied to examine the relationship between net sales and related party transactions. According to the study results, joint application of VIKOR and Benford's law appears to be more applicable to identify the manipulation of corporate monthly sales than the use of Benford's law alone. VIKOR method, as we suggested in this paper, can therefore be adopted by relevant government agencies and auditors as an effective tool in uncovering financial crises of Taiwan stock market so as to provide more thorough protection to investors and creditors.

AB - This study utilizes VIKOR (VIšekriterijumsko KOmpromisno Rangiranje) method and five important financial features to analyze 100 publicly issued companies. Benford's law is applied to examine the relationship between net sales and related party transactions. According to the study results, joint application of VIKOR and Benford's law appears to be more applicable to identify the manipulation of corporate monthly sales than the use of Benford's law alone. VIKOR method, as we suggested in this paper, can therefore be adopted by relevant government agencies and auditors as an effective tool in uncovering financial crises of Taiwan stock market so as to provide more thorough protection to investors and creditors.

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A study on the relationship between related party transactions and monthly sales in Taiwan's publicly issued companies

Abstract

Keywords

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