Market value and related party's transactions: a panel data approach

Purpose This research aims to examine the impact of RPTs and board directors' characteristics on market value Indian listed banks. Further, this study evaluates moderation effect composition association between banks’ value. Design/methodology/approach The sample size consists 38 banks Bombay stock exchange. current is based secondary data for ten years from 2010 2019. Generalized Method Moment (GMM) was used estimating results. Findings Subsidiary transactions, size, composition, diligence, promoters, remuneration banks' leverage have a significant positively moderates measured by Tobin's. Furthermore, corporate governance total all subsidiary transactions. Research limitations/implications limited only whose are available in ProwessIQ database, which makes it difficult generalize findings other unlisted helps policymakers, investors creditors categorize into different groups identify harmful beneficial once bank. suggest that should not consider key personal transactions as transactions; instead, absence independent directors. Originality/value present contributes existing literature evaluating interaction related party focuses financing industry; banks, has been sufficiently researched comparison non-financing industries.