Political connections and the quality of accounting information — Empirical evidence from Chinese private listed enterprises

Political connections has become a research hot spot problem since this concept was proposed at home and abroad. The present domestic researches have yet to further explore the relationship between political connections of private listed companies. By studying the relationship between political connections of private listed companies (going concern) and accounting information quality from 2007 to 2012, this paper found that the accounting information quality of politically connected private enterprise was lower. Different types of political connections had different impact on the quality of accounting information: the government had the greatest effect, then the representatives of CPCC, while others background had little impact. In the post financial crisis era, the negative effect between political connections and accounting information quality of the private listed companies was more significant.