Related-Party Transactions, Chaebol Affiliations, and the Value of Cash Holdings

This study examines whether related-party transactions (RPTs) impact the value of firms’ cash holdings. Using a 2011–2018 sample Korean public firms, we find that greater RPTs lead to lower holdings value. In particular, this decline is more pronounced in chaebol firms than non-chaebol firms. Our findings suggest unique and complex corporate governance structure makes it difficult for outside investors monitor internal management decisions, resulting negative valuation contributes extant literature by providing additional evidence with severe agency problems may