write 600 words critical reflective account

The research shows that for companies with government connections, the consistency of the published financial details is consistently lower than for firms without such links. Political connections tend to be an effective measure of accounting efficiency even after adjusting some widely used nation-level parameters, such as the total wide of bribery, or investor protection metrics, and for company-specific factors. Although relations are related to lower ex-post consistency receivables, the performance of prior accruals does not justify the tendency of a company to create a connection in a given time. Therefore it is the case that businesses with low performing receivables end up having political relations.

Two other alternative theories which are non-mutually exclusive are compatible with the findings. Secondly, it may be that linked businesses knowingly expose details of poor quality in an effort to confuse customers so that stakeholders can prosper at their expense. Nevertheless, it may be that related companies have a lesser need to commit time and effort to handle budgetary receivables because of the security they receive after relations are created. Although the first theory cannot be checked explicitly, there is evidence for the second. Past work also has shown that lower-quality accounting knowledge is correlated with prices. In particular, there is proof that the recorded income of poorer quality is correlated with increased debt costs only for the non-politically related businesses in the study. That is, businesses with political ties are confronted with little negative impact from their lower-performing disclosures

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