Related Party Transactions

Working Paper

Be Careful What You Wish For: How Progress Engendered Regression in Related Party Transaction Regulation in Israel

The regulation of related party transactions (RPTs) is today the single most important yardstick for the quality of corporate governance systems. It is also one of the thorniest issues because RPTs are a well-documented cause of abuse by...Read more

Amir Licht
29 January 2018

RPTs in SOEs: Tunneling, Propping, and Policy Channeling

This essay, prepared for a volume on related-party transactions (RPTs), explores the economic, legal and policy challenges associated with RPTs in state-owned enterprises (SOEs). We show that RPTs in SOEs differ from RPTs in privately owned...Read more

Curtis J. Milhaupt
Mariana Pargendler
10 March 2018

Related Party Transactions in Commonwealth Asia: Complexity Revealed

The World Bank’s influential Doing Business Report (DBR) has been a key platform for the American-driven dissemination of global norms of good corporate governance. A prominent part of the DBR is the related party transactions (RPT) index, which...Read more

Dan Puchniak
Umakanth Varottil
07 May 2018

Procedural and Substantive Review of Related Party Transactions (RPTs): The Case for Non-Controlling Shareholder-Dependent (NCS-Dependent) Directors

In publicly traded companies, related party transactions (RPTs) are an obvious vehicle for shareholder expropriation. However, they may also be efficient, particularly when they are motivated by transaction cost savings. This paper aims to...Read more

Alessio Pacces
17 May 2018

Enforcing Rules on Related Party Transactions in Italy: One Securities Regulator’s Challenge

In the wake of the corporate scandals of the early 2000s, Italian policymakers tackled tunnelling via related party transactions (RPTs) by enacting a three-layer regime: a statute setting the goals of a regulation (transparency, and substantial...Read more

Luca Enriques
Mateja Milič
08 June 2018

Related Party Transactions: Policy Options and Real-World Challenges (With a Critique of the European Commission Proposal)

This paper provides a legal and policy analysis of transactions between a corporation and one of its ?related parties.? It first highlights the reasons why related party transactions (?RPTs?) are so common around the world. Next, it better...Read more

Luca Enriques
01 October 2014

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