The Role of National Culture in International Financial Reporting Standards Adoption

El-Helaly, Moataz; Ntim, Collins G.; Soliman, Mark T.

doi:10.1016/j.ribaf.2020.101241

Cited by 25 publications

(19 citation statements)

References 67 publications

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“…(2015) examined the association that exists between corporate cash holdings and national cultural dimensions and found that while corporate cash holdings are negatively associated with individualism, they are positively associated with uncertainty avoidance. El-Helaly et al. (2020) analyzed the role of national culture in the adoption of International Financial Reporting Standards (IFRS), determining that culture is a significant factor that impacts IFRS adoption decisions at the country level.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Gray (1988) proposed that international differences in accounting systems and attitudes towards financial management and disclosures could be explained and predicted by differences in MD 60,7 cultural factors. Accordingly, a growing number of studies have explored the impact of culture on the financial reporting practices of companies (Jaggi and Low, 2000;Tsakumis, 2007;Han et al, 2010;Kanagaretnam et al, 2011;Chen et al, 2015;Gray et al, 2015;El-Helaly et al, 2020). For instance, Jaggi and Low (2000) empirically examined the association between cultural values and financial disclosures, documenting that cultural values have no significant impact on the financial disclosures of companies that originate from common law countries while producing mixed effects on the disclosures of those companies from code law countries.…”

Section: Prior Researchmentioning

confidence: 99%

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Investigating the role of national culture on integrated report assurance: international evidence

Uyar

Kılıç

Kuzey

2021

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PurposeDrawing on neo-institutional, stakeholder, social contract and contingency theories, the objective of this study is to examine whether cultural values across countries may influence decisions to assure integrated reports.Design/methodology/approachFor this purpose, the authors have collected integrated reporting assurance, national culture and firm-specific data from several sources for the years ranging between 2011 and 2016 and have performed pooled and panel logistic regression analyses.FindingsThe authors found that corporations established in countries where the following characteristics prevail have higher tendencies to assure integrated reports: high collectivism among people, low power distance, strong feminine values rather than masculine values, high uncertainty avoidance, pursuance of short-term goals rather than long-term and a low level of indulgence.Research limitations/implicationsThe study is not free from limitations. First, the authors were only able to obtain assurance data for the years between 2011 and 2016 since 2011 was the initial year in which integrated reporting was adopted. Second, culture variables used throughout the study remained the same for each year due to the unavailability of differing data. This was noted in prior studies as well; thus, this is not an exception. Third, the assumption that all companies in a country have the same culture score is inherent in the scoring system of countries (Orij, 2010).Practical implicationsBased on the results, the authors drew implications for organizations, policymakers and assurance service providers. Multinational corporations can benefit from the outcome of this study by considering national cultures in formulating their corporate strategies. Finally, assurance service providers can position themselves in the marketplace by the findings of this study.Originality/valueThis paper aims to enhance the comprehension of corporate reporting practices by companies that operate in different countries, with necessarily varying cultural values. To the best knowledge of the authors, no prior study has yet examined the impact of national culture on the assurance of integrated reports.

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Section: Literature Reviewmentioning

confidence: 99%

Section: Prior Researchmentioning

confidence: 99%

Investigating the role of national culture on integrated report assurance: international evidence

Uyar

Kılıç

Kuzey

2021

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“…Regarding the link between culture and accounting, it has long been remarked in the literature that national accounting systems are shaped by the national environment, which includes culture. Within the accounting and management fields, researchers have attempted to use culture to explain country differences in accounting, management and budgeting (e.g., Li and Harrison, 2008;Cieslewicz, 2014, Rodríguez Bolívar et al, 2015Degravel et al, 2016;Graham and Sathye, 2017;Ax and Greve;Ameen et al, 2018;Dahmarde, Ghaleno and Zarei, 2018;Kwarteng and Aveh, 2018;Denning, 2020;El-Helaly et al, 2020;Zarei et al, 2020). It therefore follows that national culture will directly influence accounting and budgeting (Cieslewicz, 2014).…”

Section: Critical Theorisation Of Culture Accounting and Budgetingmentioning

confidence: 99%

The fit between GLOBE cultural dimensions, budget transparency and performance management across emerging economies

Zarei

Yazdifar

Nasseri

et al. 2022

IJOEM

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PurposeThere is a dearth of research that investigates the impact of national culture on budgeting and management indexes in the public sector across developing countries. Limited studies in accounting and management have explained the role of national culture in shaping organisational and individual values. It is posited that national cultural variables impact budget transparency and performance management. This study contributes to the literature by examining these relations in 16 developing countries.Design/methodology/approachAdopting an unbalanced timing framework, the current paper seeks to fulfill this gap and applies four cultural dimensions from the GLOBE study (House et al., 2004) as explanatory variables to investigate whether national culture is associated with budget transparency and performance management or not, particularly in the context of developing countries. The paper uses budget transparency as the first dependent variable, based on the OECD database from Qi and Mensah (2011), along with performance management as the second dependent variable, from the BTI Project (2016), according to the leadership's political performance management.FindingsGenerally, the empirical findings reveal a minimal relation among GLOBE cultural variables with budget transparency and performance management. Particularly, the empirical findings indicate that only performance orientation has a significant relation with budget transparency and performance management.Research limitations/implicationsThe findings of this paper suggest that any plan to improve a nation's budget transparency should consider the links between budgeting, performance management and the culture of those that run them.Originality/valueThe formal adoption of new methods by performance management may not be enough without accompanying efforts to transform performance orientation as an index of national culture.

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“…Yi et al (2019) studied the impact of corruption and institutions on inward FDI across various investment phases in host countries. El-Helaly et al (2020) analyzed the effect of corruption and national culture on international accounting standards adoption. Mersland et al (2020) focused on the effect of corruption on market selection by investing organizations.…”

Section: Literature Reviewmentioning

confidence: 99%

How far are we from understanding corruption? The effect of cultural distance on corruption perception

Szymanski

Valdovinos

Kaltenecker

2021

cpoib

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Purpose This study aims to examine the relationship between cultural distances between countries and their scores in the Corruption Perception Index (CPI), which is the most commonly used measure of corruption in international business (IB) research. Design/methodology/approach The authors applied fixed-effect (generalized least squares) statistical modeling technique to analyze 1,580 year-country observations. Findings The authors found that the CPI score is determined to a large extent by cultural distances between countries, specifically the distance to the USA and to Denmark. Research limitations/implications CPI is often used as a sole measure of state-level corruption in IB research. The results show that the measure is significantly influenced by cultural differences and hence it should be applied with great caution, preferably augmented with other measures. Originality/value To the best of the authors’ knowledge, this is the first study to look at cultural distances as determinants of CPI score. The authors empirically test whether the CPI is culturally biased.

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The Role of National Culture in International Financial Reporting Standards Adoption

Cited by 25 publications

References 67 publications

Investigating the role of national culture on integrated report assurance: international evidence

Investigating the role of national culture on integrated report assurance: international evidence

The fit between GLOBE cultural dimensions, budget transparency and performance management across emerging economies

How far are we from understanding corruption? The effect of cultural distance on corruption perception

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