A discussion on new cultural and accounting variables and IFRSs’ implementation[:] Empirical study on a sample of Central and Eastern European countries.

Dima, Bogdan and Dima (Cristea), Stefana Maria (2009): A discussion on new cultural and accounting variables and IFRSs’ implementation[:] Empirical study on a sample of Central and Eastern European countries.

Abstract

In the context of a growing literature addressing the connection between cultural variables and accounting regulations, the general objective of this paper is to provide a theoretical discussion and empirical evidence on the recent trends in financial reporting on a sample of CEE countries. Thus, the specific objectives of the paper are: 1) to provide an operational definition of culture; 2) to advance a set of cultural variables that we consider relevant for the interactions between culture and the implementation of accounting regulations; (3) to “translate” these variables into a set of specific accounting variables built from a “functional” perspective; 4) to test four hypotheses based on the empirical pool data. The dependent variable is a dummy aiming to capture the specificity of IFRSs’ endorsement for unlisted entities in CEE countries and the explanatory variables are our own accounting variables based on a set of cultural ones derived from World Values Survey’s questions. The main output of the paper consists in the thesis that the culture in general and the specific accounting values in particular are relevant for the national characteristics of IFRSs’ implementation in the sample countries.

• Item Type: MPRA Paper
• Language: English
• Keywords: cultural variables, accounting variables, financial reporting, IFRSs, WVSs, CEE
• Subjects: M - Business Administration and Business Economics ; Marketing ; Accounting ; Personnel Economics > M4 - Accounting and Auditing > M41 - Accounting; C - Mathematical and Quantitative Methods > C2 - Single Equation Models ; Single Variables > C23 - Panel Data Models ; Spatio-temporal Models; M - Business Administration and Business Economics ; Marketing ; Accounting ; Personnel Economics > M4 - Accounting and Auditing > M49 - Other

References

Adler, N. (1986) International Dimensions of Organizational Behavior, Kent Publishing Company

Barkema, H. G. & Vermeulen, F. (1997) “What differences in the cultural backgrounds of partners are detrimental for international joint ventures?”, Journal of International Business Studies, 28(4): 845-864

Baskerville, R. F. (2003) “Hofstede never studied culture”, Accounting, Organizations and Society, 28(1): 1-14

Belkaoui, A. (1989) “Cultural determinism and professional self-regulation in accounting: A comparative ranking”, Research in Accounting Regulation, 3: 93-101

Bogdan, V. & Cristea, Ş. (2008) “Rules (or Laws) vs. Standards. Research regarding the accounting regulation trends in Eastern and Central European countries”, Journal of Accounting and Management Information Systems [OT:Contabilitate şi Informatică de Gestiune], Academy of Economic Studies, Bucharest, 25: 72-92

Bond, M. H. (1988) “Finding universal dimensions of individual variation in multicultural studies of values: The Rokeach and Chinese value surveys”, Journal of Personality and Social Psychology, 55(6): 1009-1015

Chanchani, S. & Willet, R. (2004) "An empirical assessment of Gray's accounting value constructs", International Journal of Accounting, 39(2)

Chow, L. M., Chau, G. K. & Gray, S. J. (1995) “Accounting reforms in China: Cultural constraints on implementation and development”, Accounting and Business Research, 26(1): 29-49

Cozzi, G. (1998) “Culture as a Bubble”, Journal of Political Economy, 106(2): 376-394

Ding, Y., Jeanjean, T. & Stolowy, H. (2004) "Why do national GAAP differ from IAS? The role of culture", paper presented at European Accounting Association Congress, Athens

Dunn, P. (2002) “International Accounting Standards”, Journal of Accounting Literature

European Values Study Group and World Values Survey Association. EUROPEAN AND WORLD VALUES SURVEYS FOUR-WAVE INTEGRATED DATA FILE, 1981-2004, v.20060423, 2006.Aggregate File Producers: Análisis Sociológicos Económicos y Políticos (ASEP) and JD Systems(JDS), Madrid, Spain/Tilburg University, Tilburg, The Netherlands. Data Files Suppliers: Analisis Sociologicos Economicos y Politicos (ASEP) and JD Systems (JDS), Madrid, Spain/Tillburg University, Tillburg, The Netherlands/ Zentralarchiv fur Empirische Sozialforschung (ZA), Cologne, Germany:) Aggregate File Distributors: Análisis Sociológicos Económicos y Políticos (ASEP) and JD Systems (JDS), Madrid, Spain/Tillburg University, Tilburg, The Netherlands/Zentralarchiv fur Empirische Sozialforschung (ZA) Cologne, Germany.

Gernon, H. & Wallace, R.S.O. (1995) “International accounting research: A review of its ecology, contending theories and methodologies”, Journal of Accounting Literature, 14: 54-106.

Gray, S.J. (1988) “Towards a Theory of Cultural Influence on the Development of Accounting Systems Internationally” Abacus, 24(1): 1-15

Gray, R.H., Owen, D.L. & Maunders, K.T. (1987) Corporate Social Reporting: Accounting and accountability, Hemel Hempstead: Prentice Hall, IX

Harrison, G.L. & McKinnon J.L. (1986) “Culture and Accounting Change: A New Perspective on Corporate Reporting Regulation and Accounting Policy Formulation”, Accounting, Organisations and Society, 11(3): 233-252

Hirshleifer, J. (2001) The Dark Side of the Force: Economic Foundations of the Conflict Theory, Cambridge University Press

Hofstede, G. (1980) Culture's consequences, Sage Publications

Hofstede, G. (1991) Cultures and Organizations, Software of the Mind: Intercultural Cooperation and its Importance for Survival, McGraw-Hill Book Company Europe

Hofstede, G. (2001) Culture's consequences: Comparing values, behaviors, institutions and organizations across nations, Second, Sage Publications (London)

Hofstede, G. & Bond, M. H. (1988) “The Confucius connection: From cultural foots to economic growth”, Organisational Dynamics, 16(1): 5-21

Hoppe, M. H. (1990) A comparative study of country differences in work-related values and learning and their implications for management training and development, University of North Carolina at Chapel Hill

Hussein, M. E. (1996) “A comparative study of cultural influences on financial reporting in the U.S. and the Netherlands” The International Journal of Accounting, 31 (1): 95-120

Inglehart, R. (2008) Inglehart-Welzel Cultural Map of the World

Kroeber, A.L. & Kluckhohn, C. (1952) “Culture. A critical review of concepts and definitions”, Peabody Museum Papers, 47(1)

Luzzati, T. (1999) “Economic Theory and Conformism”, in Gallegati M. & Kirman A. (a cura di), Beyond the Representative Agent, Cheltenham, E.E., September: 113-142

MacArthur, J. B. (1996) “An investigation into the influence of cultural factors in the international lobbying of the international accounting standards committee: The case of E32, comparability of financial statements”, The International Journal of Accounting, 31(2): 213-237

Mahler, J. G. & Regan, P. M. (2005) “Agency Internets and the changing dynamics of congressional oversight”, International Journal of Public Administration, 28(7/8): 553-565

Nakada, P. (2005) "Accounting for Risk: Guidelines for Risk-Adjusting Your Profitability Measures". Journal of Performance Management, http://findarticles.com/p/article/mi_qa4148/is_200505/ai_n15743009 accessed on 02 Nov. 2008, 10 p.m.

Oriol, A. & Blake, J. & Wraith, P. & Oliveras E. (1999), "Dimensions of National Culture and the Accounting Environment - The Spanish Case", Economics Working Papers 394, Department of Economics and Business, Universitat Pompeu Fabra

Perera, H. (1989) “Towards a framework to analyze the impact of culture on accounting”, The International Journal of Accounting, 24: 42-56

Perera, H. (1994) “Culture and international accounting: Some thoughts on research issues and prospects”, Advances in International Accounting, 7: 267-285

Perera, M. H. B. & Mathews, M. R. (1990) “The cultural relativity of accounting and international patterns of social accounting”, Advances in International Accounting, 3: 215-251

Pourjalali, H. & Meek, G., 1995, "Accounting and Culture: The case of Iran”, Research in Accounting in Emerging Economies, Vol. 3: 3-17

PricewaterhouseCoopers (2004) Doing Business and Investing in the Slovak Republic

Roberts, C. B. & Salter, S. B. (1999) “Attitudes towards uniform accounting: Cultural or economic phenomena?”, Journal of International Financial Management and Accounting, 10 (2): 119-142

Salter, S. B. & Niswander, F. (1995) “Cultural influence on the development of accounting systems internationally: A test of gray's [1988] theory”, Journal of International Business Studies, 26(2): 379-397

Sondergaard, M. (1994) “Hofstede's consequences: A study of reviews, citations and replications”, Organization Studies, 15(3): 447-456

Smith, P. B., Dugan, S. & Trompenaars, F. (1996) “National culture and the values of organizational employees: A dimensional analysis across 43 nations”, Journal of Cross-Cultural Psychology, 27(2): 231-264

Talpoş, I., Dima, B., Mutaşcu, M. & Enache, C. (2005) “Agency, associations and culture: a tale of state and society”, Public Choice Society Annual Meeting, New Orleans, March 10-13

Williams, C.A. & Aguilera, R. V. (2008) “Corporate Social Responsibility in a Comparative Perspective”, in Crane, A. et.al., The Oxford Handbook of Corporate Social Responsibility (PDF), Oxford: Oxford University Press