Journal of Accounting and Management Vision

Journal of Accounting and Management Vision

Investigating the effect of financial helplessness and political dependence on risk management in the capital market of Iran

Document Type : Original Article

Author
Moshaver mali
Abstract
Financial helplessness of companies is one of the concerns of creditors, investors and managers. Although financial helplessness does not necessarily lead to the bankruptcy of the company, but in financial failure it can cause significant financial losses to creditors and investors. Empirical evidence from economic dependence literature shows that in the field of profit quality, companies with economic dependence are different from non-dependence companies. Nevertheless, the results are inconsistent in terms of the effect of political affiliation on profit quality, and job development and weak punishment motivate managers with political affiliation to engage in daring earnings management activities, as well as managers with political affiliation in order to Improving job positions and achieving their own personal benefits can benefit from bold profit management. Therefore, according to the above contents, this research seeks to investigate the issue of whether financial helplessness and political dependence have an effect on the management of reckless profit in the capital market of Iran. The statistical population of the research is 128 companies admitted to the Tehran Stock Exchange. Also, the time domain includes 10 consecutive years from 1393 to 1402, which was tested using logistic regression and combined data, and the results of the findings showed that there is a relationship between financial helplessness and political dependence with bold profit management in the capital market. Iran has a significant relationship.
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