Author/Authors :
Seraj, Shahrzad Department of Accounting - Science and Research - Islamic Azad University Tehran Branch, Tehran, Iran , Nikoomaram, Hashem Science and Research - Islamic Azad University Tehran Branch, Tehran, Iran , Yghoubnezhad, Ahmad Islamic Azad University Central Tehran Branch, Tehran, Iran , Vakilifard, Hamidreza Faculty of Management and Economy - Science and Research - Islamic Azad University Tehran Branch, Tehran, Iran
Abstract :
The purpose of this study is to investigate the Impact of corporate political connections on Earnings
management sensitivity in the capital market. A total of 113 companies of Tehran Stock Exchange that were
selected through systematic elimination sampling during 2009-2019 were examined. In order to measure the
dependent variable of this study, namely the sensitivity of Earnings management, the sensitivity of accruals, the
sensitivity of real items and the sensitivity of income items were used through the GMM approach.
The results showed that political connection has a significant effect on the sensitivity of income items and the
sensitivity of real items, but it does not have a significant effect on the sensitivity of accruals. Therefore, political
connections can be used from these connections and on the other hand earnings management behaviors and
reporting of reports should be avoid according to the compliance of stockholder political institutions with careful
auditing and monitoring.
Keywords :
Political Connection , Earnings Management Sensitivity , Accrual Sensitivity , Real Sensitivity and Income Sensitivity
