Consequences of Local Social Norms: A Review of the Literature in Accounting, Finance, and Corporate Governance

Habib, Ahsan; Costa, Mabel D.; Al‐Hadi, Ahmed

doi:10.2139/ssrn.3868581

Cited by 1 publication

(1 citation statement)

References 188 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…These norms reflect behavioral expectations with the goal of avoiding the disapproval of others (Sunder, 2005). After all, a manager makes the decisions, not the company, and as individuals they will be influenced by societal expectations and norms that reflect national culture (Habib et al, 2021). Gray (1988) provided a theoretical basis for linking Hofstede's cultural dimensions with accounting systems.…”

Section: Literature Reviewmentioning

confidence: 99%

Examining the Relationship Between National Culture and Earnings Management

2022

JABE

View full text Add to dashboard Cite

This study investigates the relationship between national culture and the incidence of earnings management across thirty-one nations while controlling for the strength of corporate governance and type of legal system. The results indicate the importance of national culture in explaining the difference in the incidence of earnings management across nations. Earnings management is found to be higher in countries with low scores on the Individualism dimension and high scores on the Uncertainty Avoidance and Long-Term Orientation dimensions. This study confirms the relationship between national culture and earnings management and contributes to the literature through the inclusion of the Long-term Orientation and Indulgence dimensions of national culture. The potential impact of national culture on earnings quality highlights the need for caution in assuming that the harmonization of accounting standards alone will lead to comparability and consistency of financial reporting.

show abstract

Section: Literature Reviewmentioning

confidence: 99%

Examining the Relationship Between National Culture and Earnings Management

2022

JABE

View full text Add to dashboard Cite

show abstract

Consequences of Local Social Norms: A Review of the Literature in Accounting, Finance, and Corporate Governance

Cited by 1 publication

References 188 publications

Examining the Relationship Between National Culture and Earnings Management

Examining the Relationship Between National Culture and Earnings Management

Contact Info

Product

Resources

About