재무적 제약이 특수관계자 거래를 이용한 운전자본관리에 미치는 영향

This study investigates whether firms facing financial constraints use related party transactions as a means to facilitate external financing or internal working capital management. In Korea, the related party transactions are widely used in business. Close economic relation between related parties enables them to share more detailed information concerning business activities. Through the related party transactions, one party can exercise significant influence over the other party that makes financial and/or operating decisions. Thus, we expect that firms experiencing financial constraints are more likely to engage in related party transactions by accelerating collection of accounts receivable from the related parties and/or delaying payment of accounts payable to the related parties. For a sample of firms listed on Korea Exchange from 2003 to 2016, we show that financially constrained firms collect (pay) accounts receivable (accounts payable) from (to) the related parties more quickly (slowly) than those from or to the non-related parties. This study extends the extant related party transactions literature by providing empirical evidence that related party transactions are used to mitigate financial constraints. This study also provides policy implications for preventing unfair trades and tunnelling between related parties.