skip to main content
Language:

Do political connections reduce earnings management?

Review of quantitative finance and accounting, 2022-07, Vol.59 (1), p.273-310 [Peer Reviewed Journal]

The Author(s), under exclusive licence to Springer Science+Business Media, LLC, part of Springer Nature 2022 ;The Author(s), under exclusive licence to Springer Science+Business Media, LLC, part of Springer Nature 2022. ;ISSN: 0924-865X ;EISSN: 1573-7179 ;DOI: 10.1007/s11156-022-01062-y

Full text available

Citations Cited by
  • Title:
    Do political connections reduce earnings management?
  • Author: Khalil, Mohamed ; Harianto, Sandy ; Guney, Yilmaz
  • Subjects: Accounting/Auditing ; Audits ; Corporate Finance ; Corporate governance ; Earnings ; Earnings management ; Econometrics ; Economics and Finance ; Finance ; Operations Research/Decision Theory ; Original Research ; Politics ; Rapid eye movement sleep
  • Is Part Of: Review of quantitative finance and accounting, 2022-07, Vol.59 (1), p.273-310
  • Description: This study examines whether political connections are associated with earnings management (both accrual-based and real) and whether the association is influenced by corporate governance and external auditing qualities. Empirical evidence on the association between political connections and earnings management remains unclear and offers mixed results. Using a sample of Indonesian firms, we find that political connections are negatively related to accrual-based (AEM) and real (REM) earnings management. In addition, the negative relationship between political connections and earnings management is more pronounced in better-governed firms and those audited by one of the Big 4 auditors. The results are robust to alternative measures of earnings management, endogeneity, and subsample tests. Our results extend the literature by shedding additional light on the governance role and benefits of political connections.
  • Publisher: New York: Springer US
  • Language: English
  • Identifier: ISSN: 0924-865X
    EISSN: 1573-7179
    DOI: 10.1007/s11156-022-01062-y
  • Source: ProQuest Central
Back to results list
INSPIRE LIBRARY - TON DUC THANG UNIVERSITY (84-028) 37 755 057 Feedback
19 Nguyen Huu Tho St. Dist.7, HCM thuvien@tdtu.edu.vn

Copyright © 2017 INSPIRE LIBRARY - TON DUC THANG UNIVERSITY

Searching Remote Databases, Please Wait