| Summary: | 碩士 === 國立成功大學 === 財務金融研究所碩士在職專班 === 102 === In the development of Taiwan society, political connection is strong. Does the relationship between political connection and financial restatement exist ? The quality of financial statements of business with good political connection may be low because it may involve the private interests or may have a lower cost of debt and the protection of politicians, and the probability of financial restatement increases in this way.
On the positive side, it may help businesses get access to opportunities for cooperation or lower financing costs if they cooperate with politicians. And it may also decrease the probability of financial restatement by improving the quality of financial statements when business and politicians place emphasis on their reputation, and in this way the popularity of enterprise increases and supervision exists. On the negative side, the probability of financial restatement may decrease under the pressure of political connection.
Therefore, this study seeks to find the relationship between political connection and financial restatement. According to the empirical results, political connection is correlated with financial restatement negatively and significantly. That is, the probability of financial restatement of business with good political connection decreases this way. This means that political connection may make enterprises perform well. However, the probability of financial restatement may decrease under the pressure of political connection.
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