This study explores the association between politically connected firms (PCFs) and income smoothing. Using a Malaysian dataset from 2002 till 2015, this study finds that PCFs are more likely to engage in income smoothing activity, in comparison with non-PCFs. Further, smoothing income in PCFs is encouraged by institutional investors, as it is perceived as an attempt to convey useful private information to investors. However, the moderating effect of institutional investors are largely driven by domestic institutional investors. This study extends prior literature on income smoothing, by suggesting that political connection is a key determinant in engaging in income smoothing activity, particularly in countries where crony capitalism and political patronage is deeply entrenched.

这项研究探讨了政治关联公司（PCF）与收入平滑之间的关联。使用2002年至2015年的马来西亚数据集，该研究发现与非PCF相比，PCF更有可能从事收入平滑活动。此外，机构投资者鼓励平滑PCF的收入，因为这被认为是试图向投资者传达有用的私人信息。但是，机构投资者的调节作用主要由国内机构投资者驱动。这项研究通过暗示政治联系是参与收入平滑活动的关键决定因素，特别是在裙带资本主义和政治支持根深蒂固的国家中，这项研究扩展了有关收入平滑的现有文献。