We extend the existing literature on related party transactions (RPTs) from a domestic to an international dimension and uncover new evidence of resource transfer by foreign direct investment (FDI) firms to their foreign affiliates through overseas RPTs. Employing uniquely-constructed RPT data of Korean firms during 2005–2010, we find significantly negative effects of such transactions on the values of parent firms, which are further confirmed from two-stage least square regressions after correcting for the endogeneity issue. Further analyses reveal that negative valuation effects are most pronounced for overseas RPTs of FDI firms which are in the high-tech industry and whose foreign affiliates are in emerging countries. These results indicate that high-tech FDI firms use RPTs as a means of transferring resources to support their poorly-performing foreign affiliates in emerging countries, especially surrounding the global financial crisis. We find little evidence that FDI firms use RPTs to withdraw or tunnel investment returns of foreign affiliates back to the home country for the benefits of investing firms during our sample period.

中文翻译：

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公司是否从与外国附属公司的关联交易中受益？来自韩国的证据

我们将现有的关联方交易 (RPT) 文献从国内扩展到国际维度，并揭示了外国直接投资 (FDI) 公司通过海外 RPT 向其外国子公司转移资源的新证据。使用韩国公司在 2005-2010 年期间构建的独特 RPT 数据，我们发现此类交易对母公司价值的显着负面影响，在校正内生性问题后，两阶段最小二乘回归进一步证实了这一点。进一步分析表明，FDI 企业的海外 RPT 的负估值效应最为显着，这些企业属于高科技行业和其外国子公司在新兴国家。这些结果表明，高科技 FDI 公司将 RPT 用作转移资源的手段，以支持其在新兴国家表现不佳的外国子公司，尤其是在全球金融危机期间。在我们的样本期间，我们几乎没有发现 FDI 公司使用 RPT 将外国子公司的投资回报撤回或将其转移回母国的证据，以便为投资公司谋取利益。