Managerial ability, political connections and fraudulent financial reporting

Top executives are expected to have a better understanding of their business because of access to the company 's insider and confidential information, which will enable them to make better estimates and judgments. The main topic of this research is to examine the effect of managerial ability on fraudulent financial reporting. The role of political connections on the impact of managerial ability on fraudulent financial reporting was also examined. For this purpose, an example of 95 companies of listed companies in Tehran Stock Exchange during the period of 2009 to 2018 was investigated. The present research is descriptive from the point of view of purposefulness, quantitative from the strategic point of view, empirical from the perspective of approach and from the perspective of solution, field and library. To test the hypotheses, logistic regression is used. The results of the tests show that the relationship between managerial capability and fraudulent financial reporting is reversed. Also، political connections failed to significantly affect the relationship between managerial ability and fraudulent financial reporting