The study of relationship between management ability, political relationship and reporting fake finance

Empowerment is not the process of dividing a fixed amount of power; it is a process by which the relative power of each person increases, and a new power is created for the organization. Empowerment is a qualitative influence that must be created. Distorting financial statements involves manipulating the constituent elements by providing more than real assets, selling and earning, or offering less debt, costs, and losses. In cases where financial statements contain distortions, it is said that fraud has been committed in such a way that the constituent elements of that financial statement do not represent reality. In spite of numerous foreign investigations regarding the discovery of fraud in financial reports, this issue has not received much attention within the country. Therefore, the present study investigates the relationship between managerial capability, political communication and fraudulent financial reporting in Tehran Stock Exchange. The present research is based on the objective classification of applied research. Also, to estimate the above models, regression estimation is used by panel data. The statistical population of the study includes all companies accepted in Tehran Stock Exchange and the research period is from 2013 to 1396 for a period of 5 years. The results of the research indicate that the existence of powerful executives in companies has led to a reduction in fraudulent financial statements. It was also found that political communication reduced management ability in the event of fraudulent financial reports.