Earnings Conservatism Perspective:Political Connections and Earnings Quality——Evidence from China's Private Listed Enterprises

摘要

This paper investigates the relationship between political connections and earnings quality of China's private listed enterprises based on the perspective of earnings conservatism,which can help to test the negative impact political connections may have on the private firms' accounting information quality. Our study suggests that,other conditions being equal, China's private listed firms with political connections have poorer earnings quality than their non-connected peers. Additionally, the more closely private listed firms are connected with government, the poorer their earnings quality is.