%0 Journal Article
%T Intra-Business Group Transactions for Inducing Relationships between Network and Performance: Can the Network Be Optimized?
%A Hsien-Chang Kuo
%A Lie-Huey Wang
%J Journal of Mathematical Finance
%P 9-20
%@ 2162-2442
%D 2013
%I Scientific Research Publishing
%R 10.4236/jmf.2013.33A002
%X <p align=\"justify\">
	<span style=\"font-family:Verdana;\">This paper analyzes the relation between network linkage and firm performance through the intra-business group re</span><span style=\"font-family:Verdana;\">lated-party transactions, and also explore</span><span style=\"font-family:Verdana;\">s</span><span style=\"font-family:Verdana;\"> whether the network linkage could be optimized. </span><span style=\"font-family:Verdana;\">It is </span><span style=\"font-family:Verdana;\">listed on the Taiwan Stock Exchange over 2006-2008</span><span style=\"font-family:Verdana;\"> by </span><span><span style=\"font-family:Verdana;\">using financial information for business groups. For whole samples, we find a U-shaped relation between ROA and related-party purchases network linkage, and there is </span><span style=\"font-family:Verdana;\">an inverted-U-shaped asso</span></span><span style=\"font-family:Verdana;\">ciation between related-party receivable-payable network linkages and debt ratio.</span><span style=\"font-family:Verdana;\"> We also find the sales expenses ratio is positively correlated with the number of related-party buyers, but negatively correlated with the related-party sales ratio. Moreover, for high related-party sales and high related-party purchases group, it demonstrates an inverted-U-</span><span><span style=\"font-family:Verdana;\">shaped association between related-party sales and ROA, and </span><span style=\"font-family:Verdana;\">the related-party receivable-payable gap ratio is nega</span></span><span style=\"font-family:Verdana;\">tively correlated with debt ratio.</span><span><span style=\"font-family:Verdana;\"> While for low related-party sales and low related-party purchases group, related-party purchases network linkage and ROA display a U-shaped characteristic</span><span style=\"font-family:Verdana;\">, and there is a U-shaped association between total receivable-payable gap ratio and debt ratio.</span></span> 
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%K Intra-Business Group
%K Network Linkage
%K Return on Assets
%K Related-Party Transactions
%U http://www.scirp.org/journal/PaperInformation.aspx?PaperID=37584