The Effect of Board of Director Political Connections on Audit Report Lag

Since firms with political connections generally benefit from their connections. Therefore, in such companies it is necessary to use the appropriate mechanisms to strengthen company monitoring and reduce the Agency cost. One of the strategies to achieve this goal is to increase the speed of auditing and financial reporting. The purpose of this study is to explain the effect of board of director political connections on audit report lag. In this research 127 companies enlisted in Tehran Stock Exchange have been investigated for the time period 2012 to 2016. To test hypotheses were used statistical analysis with panel data method Using software tools, Eviews and linear regression model. In this research, descriptive statistics including tables and charts, central tendencies, dispersion, distributions for describing the sample, and combined regression method were used to analyze the data related to the research aspects. The Chow test was used to determine if the combined data is more efficient to estimate the desired function, and Fisher's statistic was used to examine the significance of the regression model. Also, t-Student statistic was used to examine the significance of the coefficients of the explanatory variables of regression model and Durbin-Watson test was used to investigate the non-self-correlation of model residuals.. The results showed that there is an inverse relationship between firm's political connections and audit report delay.