Related parties disclosures and an empirical study on companies in Turkey

It is important for financial statement users that financial reports are transparent and reliable. Information that needs to be disclosed to increase transparency also includes related party transactions. There are various laws and regulations in our country regarding related party transactions. Within the framework of these laws and regulations, related party transactions are expected to be explained in the most accurate way. However, in some cases, companies may misuse related party transactions for their own benefit. When the studies are examined, according to the results of some empirical studies on related party transactions in the foreign literature, it is seen that the earnings of companies are affected by different aspects as a result of their transactions with related parties. It has been observed that companies increase or decrease their earnings by using these transactions. When the literature in Turkey is examined, enough empirical studies on related party transactions have not been found and it has been a matter of curiosity whether the study to be conducted on companies in Turkey is similar to those in other countries. The purpose of this study is to explain the criteria for the increase or decrease of the related party transactions of the enterprises in Turkey and whether the related party transactions reported by the enterprise are related to the profitability of the enterprise. In this context, the data of 285 companies traded in the BIST between the years 2015-2018 were taken and analyzed by t test, anova test and regression analysis. As a result of the analyses, some criteria that are effective in the increase and decrease of related party transactions were determined and the effect of related party transactions on profitability was measured.