The effects of related party transactions on the relationship between political connections and audit report lag

TThe purpose of this study is to explain the moderating role of transactions with related party on the relationship between political connections and the delay in the audit report. One of the criteria for financial reporting quality is being up-to-date. On the other hand, in politically-minded companies, managers find incentives for potential benefits, which can lead to a loss of their rights. For this research, a sample of 156 companies listed in Tehran Stock Exchange during the period of 2012 to 2016 was selected. Based on the panel data and multi-variable linear regression analysis, the research findings showed that political connections leads to an increase in the delay in the auditor's report. Transactions with related party also increased the delay in the auditor's report, as well as the strengthening of the relationship between the political connections and the delay in the auditor's report, which confirmed that companies with a political relationship with dealers with related party transactions to hide some use transactions they do.