Journal of Accounting and Management Vision

Journal of Accounting and Management Vision

The Role of Managers' Ability to Detect Fraudulent Financial Reporting by Taking into Account the Presence and Influence of Government Officials in the Bodies of Corporate Governance by Determining the Degree of State Policy based on SA Index

Document Type : Original Article

Authors
Vahid Bekhradinasab 1
saeed ghasemi 2
1 Department of accounting, Najaf Abad branch, Islamic Azad Univercity, Najaf Abad, Iran
2 tabas
Abstract
Political influence not only affects the financial status of firms, but also impacts managers' motivation on financial reporting and financial statements, and ultimately causes significant differences in the quality of company financial statements Political affiliates compared to companies without political affiliation. Therefore, the purpose of this study is to investigate the effect of management ability on the probability of fraud detection among companies with political connections. The statistical population of the study consisted of all companies listed to the Tehran Stock Exchange between 2008 and 2018. The sample is based on the systematic elimination method of over 70 companies. The research method is based on multiple regression based on panel data using least squares method and data envelopment analysis. Research findings show that powerful managers have the power to reduce fraud in financial reporting. Also, the existence of political connections leads to fraudulent financial reporting. Other results indicate that political communication undermines the impact of managerial ability on the possibility of fraudulent financial reporting.
Keywords
Managers' ability
financial fraud
government officials