Accounting-related investigations on political costs are based on the Positive Economic Theory of Regulation, which recognizes that the political sector has the power to transfer wealth between various parties (Stigler, 1971, Peltzman, 1976). The political costs hypothesis argues that the more a company is subject to potential wealth transfers in the political process, the more its management is likely to adopt accounting policies that reduce such a transfer. In this contex, it is costly for individuals to become informed whether accounting profits really represent monopoly profits and to contract with others in the political process to enact laws and regulation that enhance their welfare.