الفهرس 
عنوان الرسالهOnly 14 pages are availabe for public view
 |  | from | 167 |  |  |
| | | from | 167 | | |
Abstract
The main objective of the current research is to examine the effect of political connections and related party transactions (RPTs) on firm value. Moreover, the moderating role of RPTs on the relationship between political connections and firm value is investigated. The research sample covers a period of five years from 2014 to 2018, including 33 Egyptian firms listed in the Egyptian Stock Exchange. A Fixed Effect Model (FEM) regression is conducted to test the research hypotheses. The firm value is measured by Tobin’s Q as it is widely used as an indicator for the firm’s competitive advantages and the firm’s effectiveness to generate future profits. Political connections are measured by using two proxies.The first proxy is political connectivity to indicate whether the firm is politically connected or not. The second proxy for political connections is political connections strength to indicate the number of political connections in the firm. RPTs are divided into RPTs related to assets and RPTs related to liabilities.The results show that: first, there is a significant positive relationship between political connections and firm value. Second, there is a significant positive relationship between RPTs related to assets, including investments with associates and due from related parties, and firm value. Furthermore, there is an insignificant negative relationship between RPTs related to liabilities, including loans/ borrowings and due to related parties, and firm value.Third, RPTs do not moderate the relationship between political connections and firm value as all interaction variables are insignificant