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We investigate whether the number and type (the nature and repetitiveness) of audit qualification paragraphs (AQPs) play a role in audit report lag (ARL). We use a unique dataset of listed firms in Iran where the multitude and diversity of AQPs are very high. The results show that ARL is longer for firms with a greater number of AQPs, that there is a significant positive relationship between all AQP types and ARL except for misclassification of accounting numbers in financial statements, and that ARL increases with the number of non-repetitive AQPs. We employed several sensitivity tests, and the results did not change materially. Drawing on prior studies, we have developed two arguments, 'additional audit procedures' and 'auditor-client negotiations', to explain the role of the number and type of AQPs on ARL. The findings of this study have significant implications for investors, auditors and authority bodies in terms of paying close attention to the number and type of AQPs in their decisions. [ABSTRACT FROM AUTHOR]

We examine the effect of political connections and political cycles on stock returns of listed companies in Iran. Using 1146 firm-year observations derived from firms listed on the Tehran Stock Exchange (TSE) for the period 2005–2017, we find that political connections are positively associated with firms' annual actual returns and annual abnormal returns. Presidential elections strengthen the positive relationship between political connections and cumulative abnormal returns. Transfer of power to the Moderation (Principlist) party in 2013 (2005) strengthened (weakened) the positive relation between political connections and cumulative abnormal returns. Several sensitivity tests show that the results are not materially different from the main findings. Consistent with the political economy perspective, the findings suggest that political connections in a centrally planned economy are valuable for both parties and they become even more valuable in election years. Moreover, consistent with rational partisan theory, results suggest that investors react to political uncertainties stemming from presidential elections and transfer of power, even in emerging market economies like Iran. • Political connections are positively associated with firms' annual actual and abnormal returns. • Presidential elections strengthen the relation between political connection and abnormal returns. • Transfer of power between parties moderates the relation between political connections and firms' abnormal returns. [ABSTRACT FROM AUTHOR]