Corporate Lobbying, Visibility and accounting conservatism

The purpose of this study was to investigate the relationship between corporate lobbying and conservatism. It is also examined how the public view of the company forms the link between company lobbying activities and accounting conservatism. In this regard, the information obtained from 256 companies accepted in Tehran Stock Exchange between 2007 and 2016 was used. The purpose of this research is the applied research, in terms of nature and method of descriptive-correlation type, in which the logistic regression model (OLS) and causality test were used to analyze the data and test the hypotheses. The results of the study showed that there is a positive significant relationship between corporate lobbying and accounting conservatism. Also, there is a significant relationship between companies with a more general viewpoint. Lobbying companies are more conservative with higher visibility (viewpoints). Higher lobby companies have higher levels of contingent conservatism. There is a negative significant relationship between lobby intensity and non-controversial accounting conservatism. An increase in lobby intensity from the company predicts further increases in accounting conservatism. However, the conservative increase in corporate accounting does not show an increase in the lobby's severity. The occurrence of lobbying with accounting conservatism in the next year has a significant relationship, but with the conservative accounting of the company in the past, there is no significant relationship.