Purpose

This study aims to assess the relationship between political connections, auditor characteristics (audit quality and industry specialization) and auditors’ intrinsic characteristics (narcissism) in listed firms on the Tehran Stock Exchange. In other words, this paper attempts to answer the question “whether political connections, audit quality and industry specialization contribute to the growth of narcissism and overconfidence of auditors of listed firms on the Tehran Stock Exchange or not.”

Design/methodology/approach

A multivariate regression model is used for hypothesis testing. The study’s hypotheses were also examined using a sample of 768-year firm listed on the Tehran Stock Exchange during 2013–2018 and by using the multiple regression pattern.

Findings

The obtained results indicate a negative and significant association between political relations, narcissism and overconfidence. The auditor’s overconfidence will go down by increasing political relations. Moreover, the results show a positive and significant relationship between audit quality, industry specialization and narcissism. On the other hand, to the best of authors’ knowledge, this study measured, for the first time, the severity of political connections by using the exploratory factor analysis of eight variables (long-term liabilities, firm size, financial leverage, export, human resources, major governmental shareholders, board members affiliated to the government and institutional ownership).

Originality/value

The authors figured out that few studies carried out, so far, in the emergent markets on political connections and their impacts on narcissism and overconfidence of auditors, so this paper aims to assess the effect of such a phenomenon in the emergent markets and contributes to the development of knowledge and science in this field.

中文翻译：

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政治关系、审计师特征与审计师自恋的关系

目的

本研究旨在评估德黑兰证券交易所上市公司的政治联系、审计师特征（审计质量和行业专业化）和审计师的内在特征（自恋）之间的关系。换言之，本文试图回答“政治关系、审计质量和行业专业化是否导致德黑兰证券交易所上市公司审计师自恋和过度自信的增长”这个问题。

设计/方法/方法

多元回归模型用于假设检验。该研究的假设还使用了 2013-2018 年在德黑兰证券交易所上市的 768 年公司样本并使用多元回归模式进行了检验。

发现

所得结果表明政治关系、自恋和过度自信之间存在显着负相关。审计师的过度自信会随着政治关系的增加而下降。此外，结果表明审计质量、行业专业化和自恋之间存在显着的正相关关系。另一方面，据作者所知，本研究首次通过对八个变量（长期负债、公司规模、财务杠杆、出口、人力资源、主要政府股东、隶属于政府的董事会成员和机构所有权）。

原创性/价值

作者发现，迄今为止，在新兴市场中很少有关于政治联系及其对审计师自恋和过度自信的影响的研究，因此本文旨在评估这种现象在新兴市场中的影响，并有助于发展这一领域的知识和科学。