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:: year 16, Issue 63 (2025) ::
fa 2025, 16(63): 39-50 Back to browse issues page
The Effect of Political Influence on the Relationship between Conservatism and Bankruptcy Risk
Mehrdad Sadrara *1 , Seyed Mohammad Moshashaei1 , Hamed Omrani2
1- Department of Economics and Accounting, University of Guilan, Rasht, Iran.
2- Department of Accounting, University of Kharazmi, Tehran, Iran.
Abstract:   (4 Views)
This research aims to examine the effect of political influence in companies on the relationship between conservatism and bankruptcy risk. Our evidence includes companies listed on the Tehran Stock Exchange. To select the research sample and create consistency among companies, certain conditions were applied to the investigated companies under study, such as fiscal year-end date and non-membership in the financial and investment industry. Then, 138 companies were selected in the period of 2014 to 2023 by applying certain conditions. In order to test the hypotheses, the Generalized Least Squares regression method based on panel data has been used. The results showed that there is a negative and significant relationship between conservatism and bankruptcy risk. This means that companies can reduce the risk of bankruptcy by applying conservative policies. Also, the results showed that political influence has a negative relationship with bankruptcy risk, and companies with high ratios of government ownership are at a lower risk of bankruptcy due to political influence and government support. The negative effect of political influence has intensified the negative effect of conservatism on the level of bankruptcy risk in companies that have political influence in comparison with other companies.
 
Article number: 3
Keywords: Political Influence, Conservatism, Bankruptcy Risk.
Full-Text [PDF 649 kb]   (3 Downloads)    
Type of Study: Research | Subject: Special
References
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Sadrara M, Moshashaei S M, Omrani H. The Effect of Political Influence on the Relationship between Conservatism and Bankruptcy Risk. fa 2025; 16 (63) : 3
URL: http://qfaj.mobarakeh.iau.ir/article-1-2835-en.html
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year 16, Issue 63 (2025) Back to browse issues page
فصلنامه حسابداری مالی Quarterly Financial Accounting
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