Chaney, Paul K.; Faccio, Mara; Parsley, David - In: Journal of Accounting and Economics 51 (2011) 1-2, pp. 58-76
We document that the quality of earnings reported by politically connected firms is significantly poorer than that of similar non-connected companies. Our results are not due to firms with ex-ante poor earnings quality establishing connections more often. Instead, our results suggest that,...