Investigating the Effect of Political Relationships on Financial Performance and Risk of Banking Facilities

Having a political relationship can affect the behavior of companies in terms of financial performance. In this way So, the purpose of our paper is to is to study the relationship between political affiliations and bank economic performance that is accepted in Tehran Stock Exchange, over the period of 1391 to 1395 For examine economic performance is used two factors, return on assets (ROA) and default risk. We focused on 9 banks which are accepted in Tehran Stock Exchange, and we used multi variable regression model based on sign data technique to examine them. Our results offer that there is a negative and meaningful relationship between political connections And return on assets (ROA). And also the results show there is a positive and meaningful relationship between political connections and default risk.