The impact of related party transactions (RPTs) and business strategy on future-oriented sustainability performance: Evidence from emerging Asian market
Abstract Purpose This study aims to assess the impact of related party transactions (RPTs) on future-oriented sustainability performance (FOSP) moderated by different strategies for companies listed on the Tehran Stock Exchange (TSE). Design The sample consists of 115 companies listed on the TSE fro...
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| Format: | Article |
| Language: | English |
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Springer
2025-05-01
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| Series: | Discover Sustainability |
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| Online Access: | https://doi.org/10.1007/s43621-025-00859-w |
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| author | Arash Arianpoor Mahdi Rezvani Ali Shakir Zaidan Khai Wah Khaw XinYing Chew Shiuh Tong Lim |
| author_facet | Arash Arianpoor Mahdi Rezvani Ali Shakir Zaidan Khai Wah Khaw XinYing Chew Shiuh Tong Lim |
| author_sort | Arash Arianpoor |
| collection | DOAJ |
| description | Abstract Purpose This study aims to assess the impact of related party transactions (RPTs) on future-oriented sustainability performance (FOSP) moderated by different strategies for companies listed on the Tehran Stock Exchange (TSE). Design The sample consists of 115 companies listed on the TSE from 2014 to 2022. This study uses related party sales, related party purchases, related party receivables, and related party payables. In addition, cost leadership and differentiation strategies are considered. Findings The results show that the related party sales and party receivables negatively influence the FOSP, while the related party inventory purchases and the related party payables positively influence FOSP. The results also show that the differentiation strategy negatively impacts the effect of the RPTs on FOSP. Moreover, the results are presented separately for companies with high business strategy (first quarter) and low business strategy (third quarter). The results show that at the low level of the business strategies (i.e., Q3), the cost leadership strategy only increases the impact of payables transactions on FOSP. These results remained robust even after several robustness tests. Originality/value Future-oriented sustainability is significantly affected by the type of business activity and international differences for the effects of diversification strategies would be related to the degree of countries’ development. On the other hand, the important role of the RPTs and business strategy cannot be ignored. None of the prior research has paid attention to the joint effect of business strategy, and RPTs on FOSP. This study can help companies in favorably pushing the market and auditing synchronization and auditing of FOSP practices in the global community. |
| format | Article |
| id | doaj-art-2eef275184654325a103e5bbdb62068e |
| institution | Kabale University |
| issn | 2662-9984 |
| language | English |
| publishDate | 2025-05-01 |
| publisher | Springer |
| record_format | Article |
| series | Discover Sustainability |
| spelling | doaj-art-2eef275184654325a103e5bbdb62068e2025-08-20T03:48:03ZengSpringerDiscover Sustainability2662-99842025-05-016111710.1007/s43621-025-00859-wThe impact of related party transactions (RPTs) and business strategy on future-oriented sustainability performance: Evidence from emerging Asian marketArash Arianpoor0Mahdi Rezvani1Ali Shakir Zaidan2Khai Wah Khaw3XinYing Chew4Shiuh Tong Lim5Imam Reza International UniversityAttar Institute of Higher EducationUniversiti Sains MalaysiaUniversiti Sains MalaysiaUniversiti Sains MalaysiaUniversiti Sains MalaysiaAbstract Purpose This study aims to assess the impact of related party transactions (RPTs) on future-oriented sustainability performance (FOSP) moderated by different strategies for companies listed on the Tehran Stock Exchange (TSE). Design The sample consists of 115 companies listed on the TSE from 2014 to 2022. This study uses related party sales, related party purchases, related party receivables, and related party payables. In addition, cost leadership and differentiation strategies are considered. Findings The results show that the related party sales and party receivables negatively influence the FOSP, while the related party inventory purchases and the related party payables positively influence FOSP. The results also show that the differentiation strategy negatively impacts the effect of the RPTs on FOSP. Moreover, the results are presented separately for companies with high business strategy (first quarter) and low business strategy (third quarter). The results show that at the low level of the business strategies (i.e., Q3), the cost leadership strategy only increases the impact of payables transactions on FOSP. These results remained robust even after several robustness tests. Originality/value Future-oriented sustainability is significantly affected by the type of business activity and international differences for the effects of diversification strategies would be related to the degree of countries’ development. On the other hand, the important role of the RPTs and business strategy cannot be ignored. None of the prior research has paid attention to the joint effect of business strategy, and RPTs on FOSP. This study can help companies in favorably pushing the market and auditing synchronization and auditing of FOSP practices in the global community.https://doi.org/10.1007/s43621-025-00859-wFuture-oriented sustainability performanceRelated party transactionsBusiness strategyCost leadership strategyDifferentiation strategy |
| spellingShingle | Arash Arianpoor Mahdi Rezvani Ali Shakir Zaidan Khai Wah Khaw XinYing Chew Shiuh Tong Lim The impact of related party transactions (RPTs) and business strategy on future-oriented sustainability performance: Evidence from emerging Asian market Discover Sustainability Future-oriented sustainability performance Related party transactions Business strategy Cost leadership strategy Differentiation strategy |
| title | The impact of related party transactions (RPTs) and business strategy on future-oriented sustainability performance: Evidence from emerging Asian market |
| title_full | The impact of related party transactions (RPTs) and business strategy on future-oriented sustainability performance: Evidence from emerging Asian market |
| title_fullStr | The impact of related party transactions (RPTs) and business strategy on future-oriented sustainability performance: Evidence from emerging Asian market |
| title_full_unstemmed | The impact of related party transactions (RPTs) and business strategy on future-oriented sustainability performance: Evidence from emerging Asian market |
| title_short | The impact of related party transactions (RPTs) and business strategy on future-oriented sustainability performance: Evidence from emerging Asian market |
| title_sort | impact of related party transactions rpts and business strategy on future oriented sustainability performance evidence from emerging asian market |
| topic | Future-oriented sustainability performance Related party transactions Business strategy Cost leadership strategy Differentiation strategy |
| url | https://doi.org/10.1007/s43621-025-00859-w |
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