Controlling Shareholder Ownership Structure and Conflict-Related Party Transactions

Concentrated companies offer various types of shareholding structures either direct, indirect, or pyramidal ownership. The opportunist controlling shareholders may intend to utilize the complex nature indirect and engage in related party transactions (RPT) by concealing hiding their identity. We examine association between shareholder’s structure (direct (DCS), (INDCS), pyramid (PYRCS)) RPT Malaysia. Based on a sample 580 listed Bursa Malaysia from 2013 2017, we found that all (DCS, INDCS, PYRCS) with RPT. These findings support argument shareholder is at privilege manipulate type get personal benefit through also indicate INDCS PYRCS disclose lower magnitude RPT-conflict rather than DCS. provide an important implication for capital market regulators strengthen approval procedures guidelines RPT, especially upon concentrated Also, such as MSWG increase minority awareness possibility conflict-RPT behind among companies. might be helpful users understand relationship other developing countries similar governance culture attributes Keywords: Related transaction, ownership, shareholder, benefit,