Library Header Image
LSE Research Online LSE Library Services

Discussion of “are related party transactions red flags?”

Jorgensen, Bjorn N. and Morley, Julia (2017) Discussion of “are related party transactions red flags?”. Contemporary Accounting Research, 34 (2). pp. 929-939. ISSN 0823-9150

PDF - Accepted Version
Download (524kB) | Preview

Identification Number: 10.1111/1911-3846.12304


Kohlbeck and Mayhew (2017) create a new data set featuring two types of related party transactions. They use empirical-archival methods to investigate the effect of such transactions on the likelihood of restatements and on audit fees. Their findings suggest that related party transactions related to directors, officers and major shareholders are associated with poor “tone at the top” and that this leads management to negotiate for lower-quality audits to minimize monitoring costs. To offer avenues for future research, we focus our discussion on three aspects of their paper related to causality, definitions of variables, and generalizability to non-U.S. jurisdictions.

Item Type: Article
Official URL:
Additional Information: © 2017 The Canadian Academic Accounting Association
Divisions: Accounting
Subjects: H Social Sciences > HF Commerce > HF5601 Accounting
Date Deposited: 09 Jun 2017 15:48
Last Modified: 20 Sep 2021 03:56

Actions (login required)

View Item View Item


Downloads per month over past year

View more statistics