Diffusion theory, transnational antecedents and International Standards on Auditing adoption around the world

Elmghaamez, Ibrahim Khalifa; Elmagrhi, Mohamed H.

doi:10.1111/ijau.12273

Cited by 10 publications

(16 citation statements)

References 71 publications

(187 reference statements)

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“…Furthermore, the application of Gray’s (1988) theory has gained widespread acceptance in international research (Gierusz et al , 2021; Heidhues and Patel, 2011). For instance, Gray’s values have recently been referred to in the study of international auditing standards (Elmghaamez and Elmagrhi, 2022).…”

Section: Literature Reviewmentioning

confidence: 99%

Culture, language, and accounting reform: a new perspective on IPSAS implementation

Abdulkarim

Umlai

Al-Saudi

2022

JAOC

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Purpose This study aims to explore the role that culture and language play in the implementation of International Public Sector Accounting Standards (IPSAS). Design/methodology/approach The Hofstede–Gray and Huerta et al. (2013) models were used to collect data on language and accounting culture. Paired-sample t-test, regression and factor analyses were conducted on data from a sample of 101 respondents. This study also used ordinary least squares to test hypotheses. Findings The cultural dimensions of professionalism, secrecy and uniformity significantly influence the implementation of IPSAS. Furthermore, this study finds a significant link between culture, language and IPSAS implementation, which underlines the need for careful consideration of International Public Sector Accounting Standards Board policies in the promotion of IPSAS internationally. Research limitations/implications While this study is limited to its research method, using secondary data would have been challenging given the setting and accessibility issues. This study overcomes this problem by using a self-administered questionnaire. Prior studies confirm the reliability of the constructs. Despite providing justifications for why the authors use judgemental sampling, the authors acknowledge the limitation of the technique in survey distribution. Furthermore, the findings cannot be read without caution, as the authors focused on one country. However, interactions between accounting practices and culture in one country may be transferred to other countries that share a common language and culture with Qatar. The authors believe future research in this area will complement the understanding of the determinants of IPSAS implementation should the study be replicated. Social implications Policymakers, standard setters and regulators should promote and enforce an integrated approach that reflects the need for accountants and auditors to be conscious of the effects of culture and language, given the likelihood of widespread IPSAS adoption. Originality/value This study offers insight into the significance of culture and language in reforming public-sector accounting systems in developing nations and emerging economies.

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Section: Literature Reviewmentioning

confidence: 99%

Culture, language, and accounting reform: a new perspective on IPSAS implementation

Abdulkarim

Umlai

Al-Saudi

2022

JAOC

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“…Furthermore, the Hofstede–Gray model has gained substantial attention and acceptance in research to predict cross-cultural differences in various constructs and has empirical support (Laskovaia et al ., 2017). For example, Gray’s accounting values have lately been discussed in international auditing standards research by Elmghaamez and Elmagrhi (2022).…”

Section: Theoretical Backgroundmentioning

confidence: 99%

Accounting in the shadows of tradition: the role of national culture

Zahid,

Khan,

Demir

2024

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PurposeCurrent research aims to investigate the relationships between Chinese national cultural values (uncertainty avoidance (UA), power distance, masculinity (MAS), individualism (IDV) and Confucian dynamism) and accounting practices (professionalism, uniformity, conservatism and secrecy).Design/methodology/approachA sample of 842 users/preparers of financial statements participated in this cross-sectional, questionnaire-based survey from China. Covariance-based structural equation modeling (CB-SEM) was used to test the proposed relationship.FindingsResults show that cultural values strongly impact financial reporting practices in China. Chinese society is characterized by low UA, high power distance, collectivism, future orientation (Confucianism) and masculine traits. These values show an overall preference for uniformity, conservatism and secrecy in financial reporting with weak professionalism. The findings show that Chinese society emphasizes law abidance, strict codes of conduct, written rules and regulations and respect for consistent orthodox measures.Practical implicationsThis study provides valuable input for policymakers in developing regulations and accounting standards in the Chinese market. Understanding the relationship between cultural dimensions and accounting values helps to address societal challenges and align policies with cultural values to acquire desired financial reporting values. Global firm managers must consider cultural dimensions in accounting when entering Chinese markets or negotiating with partners from different cultures. Findings also suggest local managers gain self-awareness of their cultural biases and accounting values, enabling them to navigate businesses and society's financial reporting needs.Originality/valueThis study enriches the existing literature on cultural and accounting practice studies by validating the role of stakeholder and social contract theories in Gray–Hofstede’s framework and highlighting the influence of dominant cultural values on accounting values. The study provides a unique empirical analysis of the Chinese market by using a questionnaire survey and structural equation modeling (SEM). Further, it also opens avenues for future research on the relationship between cultural dimensions, accounting practices and their global impact. These findings emphasize the importance of cultural sensitivity and adaptability, especially in multicultural environments.

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“…According to the DOI, individuals might postpone the adoption of a new technology until it attains popularity and gradually garners broader acceptance within society. The assessment of the relative benefits or effects of IFRS adoption from the perspective of the DOI has been somewhat limited in scope (Dayyala et al, 2020;El-Helaly et al, 2020;Elmghaamez, 2019).…”

Section: Diffusion Of Innovation Theorymentioning

confidence: 99%

Factors Affecting the Adoption of the International Financial Reporting Standards for Small and Medium-Sized Enterprises

Yeap,

Mohamad Shabri

2023

IJBT

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International Financial Reporting Standards (IFRS) as a plethora of new accounting rules that are commonly used by public companies to provide efficient and accurate financial information in an organisation. However, the study revealed that Malaysian Small and Medium-Sized Enterprises (SMEs) face persistent challenges and apparent shortcomings in the adoption of IFRS. To solve the problems of the study, the goals were created to find out how external environmental factors impact SMEs in Perlis, Malaysia, when adopting IFRS. The research is conducted based on real-time data and the currently published papers, which are related to factors affecting the implementation of IFRS for SMEs in different countries. The research was evaluated using a quantitative method that could be easily collected and analysed from the population size data in Perlis, Malaysia. The research revealed that institutional pressure, economic development, and project governance all had a favourable relationship with the IFRS initiative, but cultural considerations had no discernible influence on SMEs' adoption of IFRS. This research provides an opportunity for the important contributors in SMEs to quickly address both internal and external factors and the future success of adopting IFRS. It is important to emphasise that the results of the study can help SMEs overcome obstacles and take advantage of the benefits associated with the adoption of IFRS by providing valuable insights and actionable recommendations. As a result, SMEs can improve their financial reporting processes, transparency, and compliance, which in turn can improve their competitiveness and credibility in the international marketplace.

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Diffusion theory, transnational antecedents and International Standards on Auditing adoption around the world

Cited by 10 publications

References 71 publications

Culture, language, and accounting reform: a new perspective on IPSAS implementation

Culture, language, and accounting reform: a new perspective on IPSAS implementation

Accounting in the shadows of tradition: the role of national culture

Factors Affecting the Adoption of the International Financial Reporting Standards for Small and Medium-Sized Enterprises

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