A cross-country study on the effects of national culture on earnings management

Han, Soongsoo; Kang, Tony; Salter, Stephen B.; Yoo, Yong Keun

doi:10.1057/jibs.2008.78

Cited by 345 publications

(362 citation statements)

References 40 publications

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“…The positive sign of the variable MTB indicates that companies with higher growth expectations tend to manage more results (in accordance with Othman & Zeghal, 2006;Arnedo, Lizarraga, & Sánchez, 2007). The negative sign of LEV observed in the models indicates that companies with higher leverage tend to manage less their results, as noticed before by Dechow and Skinner (2000), Jelinek (2007) and Han, Kang, Salter, & Yoo (2010).…”

Section: Results Of Regressionsupporting

confidence: 69%

“…Finally, the results showed in Table 4 indicated that large firms (variable SIZE) tend to exercise less discretion in accounting results as observed in Othman and Zeghal (2006), Stubben (2010) and Han, Kang, Salter, & Yoo (2010). However, this result was not observed in Table 5 (one-step approach).…”

Section: Results Of Regressionmentioning

confidence: 81%

“…Previous studies (Othman & Zeghal, 2006;Stubben, 2010;Han, Kang Salter, & Yoo, 2010) also suggested that large firms tend to exercise less discretion in accounting results, due to stronger monitoring by the stock market. Thus, the natural logarithm of total assets (divided by one billion) in the current year was used as a control variable for firm size (SIZE).…”

Section: Control Explanatory Variablesmentioning

confidence: 94%

“…Specifically, we included the company sector (SECTOR) according to the classification of Economatica® database (19 sectors). This variable was used to control differences in levels of accruals due to the regulatory environment (Burgstahler, Hail, & Leuz, 2006;Johl, Jubb, & Hougton, 2003;Han, Kang, Salter, & Yoo, 2010).…”

Section: Control Explanatory Variablesmentioning

confidence: 99%

“…supervisory board, audit committee, compensation policy, internal controls); organizational culture; internationalization; size; among others. Previous studies have also identified several exogenous factors that might affect the EM behavior, such as human and economic development, economic freedom (Riahi-Belkaoui, 2004); legal system, including the rules and their enforcement (Leuz, Nanda & Wysocki, 2003); cultural values (Han, Kang, Salter, & Yoo, 2010) and; audit quality (Tendeloo & Vanstraelen, 2008).…”

Section: Introductionmentioning

confidence: 99%

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Earnings management and economic crises in the brazilian capital market

et al. 2014

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The 2008 economic crisis challenged accounting, either demanding recognition and measurement criteria well adjusted to this scenario or even questioning its ability to inform appropriately entities' financial situation before the crisis occurred. So, our purpose was to verify if during economic crises listed companies in the Brazilian capital market tended to adopt earnings management (EM) practices. Our sample consisted in 3,772 firm-years observations, in 13 years -1997 to 2009. We developed regression models considering discretionary accruals as EM proxy (dependent variable), crisis as a macroeconomic factor (dummy variable of interest), ROA, market-to-book, size, leverage, foreign direct investment (FDI) and sector as control variables. Different for previous EM studies two approaches were used in data panel regression models and multiple crises were observed simultaneously. Statistics tests revealed a significant relation between economic crisis and EM practices concerning listed companies in Brazil in both approaches used. KEY WORDS | RAE-Revista de Administração de Empresas | FGV-EAESP

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Section: Results Of Regressionsupporting

confidence: 69%

Section: Results Of Regressionmentioning

confidence: 81%

Section: Control Explanatory Variablesmentioning

confidence: 94%

Section: Control Explanatory Variablesmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Earnings management and economic crises in the brazilian capital market

et al. 2014

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International and Cultural Views

Salzmann

2012

Socially Responsible Finance and Investing

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The direct and moderating effects of power distance on carbon transparency: An international investigation of cultural value and corporate social responsibility

2018

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There are limited studies on the influence of national culture on corporate social responsibility, and thus, the issue is underexplored. Using an international sample, we show that higher power distance decreases corporate carbon transparency. In addition to this direct effect, we find that power distance also plays a moderating role in the relationship between carbon performance and carbon transparency. We report evidence of a negative association between carbon disclosure and carbon performance in our sample firms, which suggests that disclosure is driven by legitimation purposes. Further findings demonstrate that the tendency toward legitimation is more pronounced in countries with high power distance, which implies that a lower concentration of power promotes corporate social responsibility and reduces carbon opaqueness. Overall, our findings significantly enhance understanding of the role of culture in managerial response to climate change. Such an understanding is extremely important because climate change must be managed by people, and people are influenced by the underlying national cultural preference.

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A cross-country study on the effects of national culture on earnings management

Cited by 345 publications

References 40 publications

Earnings management and economic crises in the brazilian capital market

Earnings management and economic crises in the brazilian capital market

International and Cultural Views

The direct and moderating effects of power distance on carbon transparency: An international investigation of cultural value and corporate social responsibility

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