ABSTRAKTujuan penelitian ini adalah untuk meneliti pengaruh political connections dalam dewan komisaris terhadap related party transactions sebagai proxy tindakan ekspropriasi pada perusahaan. Variabel kontrol yang digunakan dalam penelitian ini termasuk board size, independent commissioner, firm size, leverage, price-to-book ratio, ROA dan business group. Hasil penelitian menunjukkan bahwa dewan komisaris dengan koneksi politik memiliki pengaruh positif terhadap related party transactions. Hasil tersebut menunjukkan bahwa rent-seeking behaviour dari politically connected board of commissioners, walaupun dalam fungsinya tidak dapat turut serta dalam pengambilan keputusan operasional perusahaan, secara signifikan akan meningkatkan potensi ekspropriasi sumber daya perusahaan
ABSTRACTThe purpose of this study is to analyze the influence of politically connected board of commissioner on related party transactions as the proxy of expropriation activities in company. Control variables being used are including board size, independent commissioner, firm size, leverage, price-to-book ratio, ROA and business group. The results show that politically connected board of commissioners has positive influence to related party transactions. The result also indicates that the rent-seeking behaviour from politically connected board of commissioner significantly increase firms? wealth expropriation potention inspite of they have no right in company?s operational decision making process