Studying the relation between transactions of related parties and the market value of companies listed on the Tehran stock exchange

Transactions with related parties can be considered as one of the most opportunistic managerial behaviors as it obtains the characteristics of a usual business activity, and can significantly Affects the performance of a business unit. In the present study the relationship between the transactions of related people and the company's value is being conducted in order to determine the type and amount of influence these kinds of transactions exert on a company. This research includes 75 companies listed on the Tehran stock exchange in the period of 2006–2011 and they have all been selected via screening. The test hypothesis was conducted through a generalized least squares method (gls) and multiple regressions. The results indicate the transactions of related parties do influence a company's value, therefore influencing the shareholders and external stakeholder's interests.