http://www.iaeme.com/IJM/index.asp 1533 editor@iaeme.com International Journal of Management Volume 11, Issue 08, August 2020, pp. 1533-1549. Article ID: IJM_11_08_138 Available online at http://www.iaeme.com/ijm/issues.asp?JType=IJM&VType=11&IType=8 Journal Impact Factor (2020): 10.1471 (Calculated by GISI) www.jifactor.com ISSN Print: 0976-6502 and ISSN Online: 0976-6510 DOI: 10.34218/IJM.11.8.2020.138 © IAEME Publication Scopus Indexed IMPACT OF CORPORATE POLITICAL CONNECTIONS AND AUDIT QUALITY ON AGENCY COST: EVIDENCE FROM PAKISTAN Dr. Anwar Hussain Anwar Hussain, Assistant Professor, Head of Department. The University of Lahore, Lahore Business School, Sargodha Campus, Pakistan Hafiz Muhammad Shahid Irfan Aslam Hafiz Muhammad Shahid Irfan Aslam, MS Scholar, The University of Lahore, Lahore Business School, Sargodha Campus, Pakistan Uzma Noor Uzma Noor, MS Scholar, The University of Lahore, Lahore Business School, Sargodha Campus, Pakistan Satisha Zafar Satisha Zafar, MS Scholar, The University of Lahore, Lahore Business School, Sargodha Campus, Pakistan Amber Saleem Amber Saleem, MS Scholar, The University of Lahore, Lahore Business School, Sargodha Campus, Pakistan Ume Hani Hafiza Ume e Hani, MS Scholar, International Islamic University Islamabad, Pakistan ABSTRACT The study examines the impact of corporate political connections and audit quality on agency cost in Pakistan. The institutional environment of Pakistan is weakened over time by giving raise to corruption, bribery and political lobbying. This study examines the impact of political connections on asset utilization ratio which has shown that political connected firms face high agency cost as they do not use their assets efficiently to generate revenue. Agency cost is proxied with asset utilization ratio which is inverse proxy to agency cost. Impact of auditor expertise, auditor independence, meeting frequency of audit committee, audit report lag and big4 audit firms on agency cost