Political connections and earnings management: the role of governance in the case of Canadian largest listed companies

What is it about?

The first question in this article is the following: do canadian biggest listed compagnies that have political connections practice earnings management more than their counterparts that are not politically connecter? And the second question is does corporate governance quality interfere in this earnings management behaviour for politically connected compagnies?

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Why is it important?

Our work shows that contrary to our expectations, politically connected compagnies exhibit better governance practices in general, including earnings management.