A significant association was found between the luxury spending of corporate managers and earnings per share and share prices which means “the value relevance of accounting information”. This finding draws attention toward the importance of behavioral analysis of corporate managers’ actions that are not value-adding to their firms since the negative impacts of these opportunistic actions do not stop at the impairment in firm value but also extent to the related party transactions’ investment decisions because of their reliance on irrelevant financial information. By dividing the study sample into two subgroups according the corporate governance mechanisms applied, the results also stressed on the pivotal role of corporate governance on the relationship between the luxury spending of managers and the value relevance of accounting information as it contributes in reducing the opportunistic behaviour of corporate managers.