How Do Corporate Political Connections Influence Financial Reporting? A Theory-Building Review of the Literature

Susanne Preuss, Roland Königsgruber

Research output: Working paperAcademic

Abstract

A large stream of research has analyzed the effects of corporate political connections on firms, including first evidence on their effects on financial reporting behavior. However, the evidence is ambiguous and attempts to explain the causality of effects on reporting are limited. In this manuscript, we present the results of a systematic review of the literature of corporate political connections. We draw on findings in the accounting, finance and economics literature and derive a theoretical framework that identifies four channels through which corporate political connections affect financial reporting. We furthermore identify seven distinct types of political connectedness and discuss their interrelations and the proxies used in the literature to measure them.
Original languageEnglish
Publication statusUnpublished - 2019

Fingerprint

Financial reporting
Political connections
Theory building
Economics
Systematic review
Connectedness
Finance
Causality
Theoretical framework

Keywords

  • Corporate Political Connections
  • Literature Review
  • Financial reporting

Cite this

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