Influence of Political Connections on the Relationship between Management Ability and Fraudulent Financial Reporting

Objective: The quality of firm management can have a significant effect on firm value, and can provide a basis for making proper economic decisions by preparing useful reports and publishing them in the capital market. Also, political connections affect managers' motivation for financial report...

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Autores principales:	Mohammad Nazaripour, Salahaldin Maghsodpour
Formato:	article
Lenguaje:	FA
Publicado:	Shahid Bahonar University of Kerman 2020
Materias:	political connections management ability fraudulent financial reporting Accounting. Bookkeeping HF5601-5689
Acceso en línea:	https://doaj.org/article/004066f057044d1389f54a3f3925d0b6
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spelling	oai:doaj.org-article:004066f057044d1389f54a3f3925d0b62021-11-04T19:56:10ZInfluence of Political Connections on the Relationship between Management Ability and Fraudulent Financial Reporting2008-89142476-292X10.22103/jak.2020.14697.3085https://doaj.org/article/004066f057044d1389f54a3f3925d0b62020-07-01T00:00:00Zhttps://jak.uk.ac.ir/article_2517_6d13fae8692f87373d8232e97933d634.pdfhttps://doaj.org/toc/2008-8914https://doaj.org/toc/2476-292XObjective: The quality of firm management can have a significant effect on firm value, and can provide a basis for making proper economic decisions by preparing useful reports and publishing them in the capital market. Also, political connections affect managers' motivation for financial reporting and preparing financial statements. This research aims to examine the influence of political connections on the relationship between management ability and fraudulent financial reporting in the companies listed in the Tehran Stock Exchange, Tehran Stock Exchange. Method: Regarding the purpose of this study, a sample of 158 companies listed in the TSE was selected from 2011 to 2017, and then, a data of 1106 firm-years was analyzed by a polynomial logistic regression model. Results: The findings showed that there is a negative and significant relationship between management ability and fraudulent financial reporting. Also, political connections have a significant and positive impact on the management ability and the fall of fraudulent financial reporting. Conclusion: The increased ability of management reduces the fraudulent financial reporting, and the political connections of the firm reduce the influence of the increased ability of management, aiming at reducing fraudulent financial reporting. That is, in companies with political connections, as management ability increases, fraudulent financial reporting increases. In other words, in companies with political connections, the manager's ability to reduce fraudulent reporting is weaker than the manager's ability in the fraudulent area in companies without political connections.Mohammad NazaripourSalahaldin MaghsodpourShahid Bahonar University of Kermanarticlepolitical connectionsmanagement abilityfraudulent financial reportingAccounting. BookkeepingHF5601-5689FAمجله دانش حسابداری, Vol 11, Iss 2, Pp 169-207 (2020)
institution	DOAJ
collection	DOAJ
language	FA
topic	political connections management ability fraudulent financial reporting Accounting. Bookkeeping HF5601-5689
spellingShingle	political connections management ability fraudulent financial reporting Accounting. Bookkeeping HF5601-5689 Mohammad Nazaripour Salahaldin Maghsodpour Influence of Political Connections on the Relationship between Management Ability and Fraudulent Financial Reporting
description	Objective: The quality of firm management can have a significant effect on firm value, and can provide a basis for making proper economic decisions by preparing useful reports and publishing them in the capital market. Also, political connections affect managers' motivation for financial reporting and preparing financial statements. This research aims to examine the influence of political connections on the relationship between management ability and fraudulent financial reporting in the companies listed in the Tehran Stock Exchange, Tehran Stock Exchange. Method: Regarding the purpose of this study, a sample of 158 companies listed in the TSE was selected from 2011 to 2017, and then, a data of 1106 firm-years was analyzed by a polynomial logistic regression model. Results: The findings showed that there is a negative and significant relationship between management ability and fraudulent financial reporting. Also, political connections have a significant and positive impact on the management ability and the fall of fraudulent financial reporting. Conclusion: The increased ability of management reduces the fraudulent financial reporting, and the political connections of the firm reduce the influence of the increased ability of management, aiming at reducing fraudulent financial reporting. That is, in companies with political connections, as management ability increases, fraudulent financial reporting increases. In other words, in companies with political connections, the manager's ability to reduce fraudulent reporting is weaker than the manager's ability in the fraudulent area in companies without political connections.
format	article
author	Mohammad Nazaripour Salahaldin Maghsodpour
author_facet	Mohammad Nazaripour Salahaldin Maghsodpour
author_sort	Mohammad Nazaripour
title	Influence of Political Connections on the Relationship between Management Ability and Fraudulent Financial Reporting
title_short	Influence of Political Connections on the Relationship between Management Ability and Fraudulent Financial Reporting
title_full	Influence of Political Connections on the Relationship between Management Ability and Fraudulent Financial Reporting
title_fullStr	Influence of Political Connections on the Relationship between Management Ability and Fraudulent Financial Reporting
title_full_unstemmed	Influence of Political Connections on the Relationship between Management Ability and Fraudulent Financial Reporting
title_sort	influence of political connections on the relationship between management ability and fraudulent financial reporting
publisher	Shahid Bahonar University of Kerman
publishDate	2020
url	https://doaj.org/article/004066f057044d1389f54a3f3925d0b6
work_keys_str_mv	AT mohammadnazaripour influenceofpoliticalconnectionsontherelationshipbetweenmanagementabilityandfraudulentfinancialreporting AT salahaldinmaghsodpour influenceofpoliticalconnectionsontherelationshipbetweenmanagementabilityandfraudulentfinancialreporting
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Influence of Political Connections on the Relationship between Management Ability and Fraudulent Financial Reporting

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