Journal of Accounting and Management Vision

Journal of Accounting and Management Vision

The effect of weak internal controls on the relationship between accounting conservatism and political relations of the board of directors

Document Type : Original Article

Authors
abdol rahim khosropor 1
ebrahim navidi abaspor 2
1 Master of Accounting-Audit, Al-Ghadir Institute of Higher Education, Tabriz, Iran.
2 Assistant Professor of Accounting Department, Marand Branch, Islamic Azad University, Marand, Iran.
Abstract
One of the most important features of the capital market of any country is its influence on political issues. Political changes in the governing body have a tangible and quick impact on the stock market since they lead to changes in economic views. The argument is that companies with extensive political relations bear lower costs due to having special conditions. Business units also have a strong desire to establish close relations with the government and politicians. For this purpose, in this research, the relationship between accounting conservatism and political relations of the board of directors, emphasizing the weakness of internal controls in the period between 2013 and 2019 for Companies active in Tehran Stock Exchange have been implemented by selecting 156 companies as a statistical sample. The method of data collection was done by using the new forecasting software and the accompanying notes of the financial statements, and the analysis of the research assumptions was done using the logistic regression test in the ninth version of EVIEWS statistical software. Netich showed that the weakness of internal control has an effect on the relationship between conservatism and political relations of the board of directors.
Keywords
Accounting conservatism
political relations of the board of directors
weak internal controls
Subjects