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

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.