Do political connections reduce earnings management?

This study examines whether political connections are associated with earnings management (both accrual-based and real) the association is influenced by corporate governance external auditing qualities. Empirical evidence on between remains unclear offers mixed results. Using a sample of Indonesian firms, we find that negatively related to (AEM) real (REM) management. In addition, negative relationship more pronounced in better-governed firms those audited one Big 4 auditors. The results robust alternative measures management, endogeneity, subsample tests. Our extend literature shedding additional light role benefits connections.