An investigating of moderating effect of related party transactions on the relationship between disclosure of research and development expenditures and firm's value

In the wake of recent financial scams, related party transactions have been one of the worst concerns that the targeted use of these transactions and their lack of disclosure or insufficient disclosure has been a factor in the fall of companies. Also disclosure by companies is one of the valuable sources of information for investors, creditors and other stakeholders for economic decision making. Therefore, the purpose of this study is an investigating of moderating effect of related party transactions on the relationship between disclosure of research and development expenditures and firm's value. For this purpose, 88 companies listed in Tehran Stock Exchange (TSE) were selected by targeted method from 2011 to 2016 and their data have been analyzed using combined data analysis. The results of the research indicate that there is a positive relationship between disclosure of research and development expenditures and firm's value, as well as there is a negative and significant relationship between related party transactions and the firm's value. In addition, related party transactions undermine the relationship between disclosure of research and development expenditures and firm's value.