@article {10.3844/ajassp.2011.156.163, article_type = {journal}, title = {The Effect of the International Accounting Standards on the Related Party Transactions Disclosure}, author = {Antonios, Stauropoulos and Ioannis, Samaras and Panagiotis, Arsenos}, volume = {8}, year = {2011}, month = {Feb}, pages = {156-163}, doi = {10.3844/ajassp.2011.156.163}, url = {https://thescipub.com/abstract/ajassp.2011.156.163}, abstract = {Problem statement: Several recent North American corporate scandals have brought attention to the potential for accounting manipulations associated with Related Party Transactions (RPTs), which have lead to a decline in perceived earnings quality. We examine the value relevance of disclosed RPTs in Greek corporations. Approach: We focus on two types of RPTs: sales of goods and sales of assets, using a value relevance approach. Results: From 2002-2007, we find that the reported earnings of firms selling goods or assets to related parties exhibit a lower valuation coefficient than those of firms in Greece without such transactions. This result is not observed during 2005-2007 after a new fair value measurement rule for RPTs came into effect. Conclusion: Our evidence suggests that the new RPT regulation in Greece is perceived to be effective at reducing the potential misuse of RPTs for earnings management purposes. Since RPTs have been the subject of numerous scandals in North America, our evidence from the Greek stock markets suggests that new RPT accounting standards could prove an efficient solution to this issue.}, journal = {American Journal of Applied Sciences}, publisher = {Science Publications} }