Do related party transactions affect the relationship between political connections and firm value? Evidence from Egypt

Abstract This paper aims to (i) investigate the impact of political connections (PC) and related party transactions (RPTs) on firm value (FV), (ii) test moderating effect RPTs such relationship, while controlling for firms’ corporate governance mechanisms. Based 315 observations from publicly listed firms in Egypt, our results reveal that there is a positive relationship between PC FV, negative (iii) existing as variable enhances politically connected companies FV. The findings suggest Egyptian are much affected by board directors or owners, this significantly exists when associated with transactions, despite that, practices could mitigate effects.