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

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ali Uyar ◽  
Merve Kilic ◽  
Cemil Kuzey
Keyword(s):  
Cultural Values ◽  
Multinational Corporations ◽  
National Culture ◽  
Service Providers ◽  
Integrated Reporting ◽  
Content Type ◽  
Reporting Practices ◽  
Corporate Strategies ◽  
Corporate Reporting ◽  
The Impact

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.

Early assessments of the gap between integrated reporting and current corporate reporting

2015 ◽  
Vol 23 (1) ◽  
pp. 92-117 ◽  
Author(s):  
Warwick Stent ◽  
Tuyana Dowler
Keyword(s):  
Problem Solving ◽  
Systems Thinking ◽  
Financial Stability ◽  
Best Practice ◽  
Small Sample ◽  
Integrated Reporting ◽  
Content Type ◽  
Reporting Practices ◽  
Corporate Reporting ◽  
Mandatory Requirement

Purpose – The purpose of this paper is to provide early assessments of the changes for corporate reporting processes, which an emerging initiative like integrated reporting (IR) will require. The authors also consider the potential for these changes to contribute towards resolving major problems such as financial and environmental crises. IR is gaining momentum globally, and the implementation of some form of future mandatory requirement in this regard appears likely. Design/methodology/approach – The authors begin by developing a reporting checklist based on the requirements for IR, which they use to assess the gap between current “best practice” reporting processes and IR. They then propose systems thinking, a widely accepted approach to problem-solving, as a theoretical basis for assessing the IR Framework and for deeper consideration of the gap analysis. They demonstrate, at a paradigm level, how systems thinking can be used to assess IR and find that IR has the potential to offer specific and implementable strategies for operationalising systems thinking principles. Findings – The authors assess 2011 annual reports and related online reporting practices for four New Zealand “best practice reporting entities”, using their reporting checklist. Although none of their sample entities published a full integrated report for 2011, reporting scores range from 70 to 87 per cent. The findings suggest that current reporting processes lack the integration, oversight and due attention to future uncertainties required by IR. While this appears to be a relatively small gap, systems thinking principles indicate that these deficiencies may be critical to sustainability and financial stability, the stated aims of IR. Research limitations/implications – The normal limitations which apply to small sample studies. Practical implications – The IR reporting checklist and systems thinking proposal could be used by policymakers, standard setters and firms to assist in assessing IR’s potential and the additional requirements it will impose for corporate reporting. Originality/value – This study answers calls in the literature for a reactivation of the normative research agenda by assessing IR against systems thinking, a widely accepted approach to problem-solving. It contributes further to an understanding of IR through the development of a unique reporting checklist and by offering empirical evidence derived from application of this checklist.

The impact of national cultural values on retail structure

2016 ◽  
Vol 33 (6) ◽  
pp. 894-920 ◽  
Author(s):  
Boryana V. Dimitrova ◽  
Bert Rosenbloom ◽  
Trina Larsen Andras
Keyword(s):  
Cultural Values ◽  
National Culture ◽  
Retail Operations ◽  
Data Set ◽  
Content Type ◽  
The World ◽  
Primary Focus ◽  
Retail Structure ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to investigate the relationship between national cultural values and retail structure. Design/methodology/approach The authors use a panel data set of 67 countries over the period 1999-2012. Findings The results demonstrate that national cultural values, measured with the World Values Survey’s traditional/secular-rational and survival/self-expression dimensions, affect retail structure. Research limitations/implications While marketing scholars have examined the relationship between demographic and competitive factors and retail structure, there has been a substantial body of anecdotal evidence showing that national culture can also drive retail structure development. In order to enhance the understanding of the relationship between national culture and retail structure, the authors empirically examine the impact of national cultural values on retail structure. Originality/value This study is the first one to empirically examine the impact of national culture on retail structure. The authors thus help advance retail structure research the primary focus of which has been on investigating the impact of demographic and competitive factors on retail structure. This study is especially relevant to international retail managers who coordinate retail operations in multiple countries around the world. These managers need insight into the impact of national cultural values on retail structure in order to devise effective retail strategies for each host market.

National cultural values, sustainability beliefs, and organizational initiatives

2015 ◽  
Vol 22 (2) ◽  
pp. 278-296 ◽  
Author(s):  
Jasmine Tata ◽  
Sameer Prasad
Keyword(s):  
Cultural Values ◽  
Multinational Corporations ◽  
National Culture ◽  
Organizational Capacity ◽  
Future Research ◽  
Organizational Sustainability ◽  
Content Type ◽  
Sustainability Practices ◽  
Sustainability Initiatives ◽  
The Relationship

Purpose – Organizations are implementing sustainability initiatives in different countries with varied socio-cultural systems. The literature on sustainability, however, does not present a clear picture of how national culture can influence interpretations of the meaning of sustainability and how these differences in interpretation can result in different sustainability practices. The purpose of this paper is to build upon the current literature by identifying mechanisms (i.e. sustainability beliefs and perceptions) that mediate the relationship between national cultural values and organizational sustainability initiatives. Design/methodology/approach – The authors examine the literature on culture and sustainability practices, and develop a conceptual model that identifies how cultural values influence the sustainability initiatives of organizations. Several propositions are identified that specify relationships among the constructs, and guidelines are provided for testing the model in future research. Findings – The model posits that national culture influences sustainability beliefs and perceptions, which in turn influence the quantity and scope of sustainability initiatives. The relationship between sustainability beliefs and organizational sustainability initiatives is moderated by sustainability orientation and organizational capacity. Originality/value – The model can help researchers and practitioners better understand the meaning of sustainability in the context of international business by identifying the mechanisms that explain the link between culture and sustainability. It can also help researchers generate hypotheses for future research. Finally, the model can guide multinational corporations attempting to drive sustainability programs through their subsidiaries as well as international developmental agencies trying to develop programs in partnership with local non-governmental organizations (NGOs).

CEO duality and bribery: the roles of gender and national culture

2017 ◽  
Vol 55 (1) ◽  
pp. 218-231 ◽  
Author(s):  
Kristine Velasquez Tuliao ◽  
Chung-wen Chen
Keyword(s):  
Cultural Values ◽  
National Culture ◽  
Hierarchical Linear Modeling ◽  
Future Orientation ◽  
Cultural Analysis ◽  
Cross Cultural ◽  
Management Decision ◽  
Ceo Duality ◽  
Content Type ◽  
The Impact

Purpose The purpose of this paper is to investigate the cross-cultural impact of CEO-Chair’s gender to the likelihood of CEO duality firm’s bribery. Design/methodology/approach Hierarchical linear modeling was used to analyze data of 5,837 CEO duality firms from 21 countries. Findings Firms with male CEO-Chairs were found to have higher propensity to bribe than their female counterparts. Moreover, cultural values of institutional collectivism and performance orientation strengthened gender’s impact to bribery. In contrast, future orientation weakened the gender-bribery relationship, as opposed to the proposed effect. Practical implications Key findings of this study can be utilized to increase awareness and widen perspective on the roles of CEO-Chair’s gender and national culture on bribery. These can also be useful in the selection of CEO-Chair, design of educational programs on ethics as well as government and non-governments’ programs and policies to minimize incidents of bribery. Originality/value There are no existing studies on CEO duality firm’s bribery which performed cross-cultural analysis on the impact of CEO-Chair’s gender, making the study a novel contribution to business ethics, organizational structure, corporate governance, management decision, transparency, and accountability.

scholarly journals Conceptualising the contemporary corporate value creation process

2017 ◽  
Vol 30 (4) ◽  
pp. 906-931 ◽  
Author(s):  
Carol A. Adams
Keyword(s):  
Sustainable Development ◽  
Value Creation ◽  
Corporate Strategy ◽  
Stock Exchange ◽  
Social Contexts ◽  
Integrated Reporting ◽  
Content Type ◽  
The Sustainable Development ◽  
Corporate Reporting ◽  
The Impact

Purpose The purpose of this paper is to examine and explain the complex interrelationships which influence the ability of firms to create value for their providers of finance and other stakeholders (loosely referred to in practice as “integrated thinking”). In doing so it examines the interrelationships between: environmental, social and governance (ESG) risk; delivering on corporate strategy; non-financial corporate reporting; and, board oversight. Design/methodology/approach Interviews were conducted with board chairs and non-executive directors of large listed companies on the Johannesburg Stock Exchange (where Boards are required to have a social and ethics sub-committee and approve integrated reports which have been mandatory since 2010) and the Australian Stock Exchange (where Board directors’ liability legislation results in Boards being reluctant to adopt integrated reporting which is voluntary). Findings The research finds that contemporary reporting processes, and in particular those set out in the King III Code and the International Integrated Reporting Framework, influence cognitive frames enhancing board oversight and assisting organisations in managing complexity. This results in increased awareness of the impact of ESG issues together with a broader view of value creation despite investor disinterest. Research limitations/implications A number of avenues of research are suggested to further examine the interrelationships identified. Practical implications The research assists the development of practice and policy by articulating and enhancing the understanding of linkages, which loosely fall under the vague practitioner term “integrated thinking”. Social implications The conceptualisation can inform national and global discussions on the appropriateness of corporate reporting and governance models to achieve sustainable development and contribute to the Sustainable Development Goals. Originality/value The paper conceptualises emerging and complex interrelationships. The cross-country comparison allows an assessment of the extent to which different national social contexts with differing governance and reporting frameworks lead to different perspectives on, and approaches to, value creation.

Sustainability reporting or integrated reporting: Which one is valuable for investors?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ika Permatasari ◽  
Ika Permatasari ◽  
I Made Narsa
Keyword(s):  
Value Relevance ◽  
Accounting Information ◽  
Sustainability Reporting ◽  
Financial Information ◽  
Integrated Reporting ◽  
Content Type ◽  
Reporting Practices ◽  
Corporate Reporting ◽  
Sustainability Reports ◽  
International Integrated Reporting Council

Purpose This research is motivated by the development of dialogue and debate regarding company reporting in the form of sustainability reporting (SR) – which is separate from the annual report (AR) – or integrated reporting (IR). Research into SR and IR is still fascinating, and this study addresses the debate about them. This study aims to examine which of the two reports is more valuable for investors, and also examine whether IR has value relevance because the information in the IR could reinforce the importance of the accounting information. Design/methodology/approach As with previous studies, we adopted a valuation approach – the Ohlson model – to assess the value relevance of non-financial information (in the form of SR/IR) and financial information. As a preliminary study, we used non-financial information as a binary variable, i.e. a group of companies that issue sustainability reports and a group of companies that issue integrated reports. Therefore, they complement and interact with the financial statements’ information. This paper used panel data consisting of 931 firm-years of SR issuers and 922 firm-years of IR issuers in Europe and Africa in the period from 2005 to 2019. Findings The results showed that SR had a higher value relevance than IR. However, when the authors interact the corporate reporting form with the accounting information, IR had value relevance because the information contained in the IR could reinforce the importance of the accounting information. Practical implications This study will support regulators in various countries to monitor the reporting practices of companies in those countries. The results of this study provide evidence that sustainability reports get a higher response than integrated reports. However, when interacted with the accounting variables, information in the IR is considered to be more relevant than that found in the SR. Therefore, it is hoped that the results of this study will help the International Integrated Reporting Council (IIRC) in reviewing IR practices around the world so that the implementation of IR practices can be realized in accordance with the mission that the IIRC wants to achieve. Originality/value Research into the value relevance of SR and IR has been carried out by several previous researchers separately, but to the best of the author’s knowledge, there are no studies comparing the value relevance of the two.

The non-financial reporting practices of Hungarian listed public interest entities considering the 2014/95/EU Directive

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Edit Lippai-Makra ◽  
Zsuzsanna Ilona Kovács ◽  
Gábor Dávid Kiss
Keyword(s):  
Financial Reporting ◽  
Public Interest ◽  
Intangible Assets ◽  
Reporting Quality ◽  
Mandatory Reporting ◽  
Content Type ◽  
Reporting Practices ◽  
Corporate Strategies ◽  
Eu Directive ◽  
The Impact

PurposeThis paper aims to investigate the non-financial reporting (NFR) practices of Hungarian listed public interest entities for 2016–2018 in terms of the required disclosure content based on the 2014/95/EU Directive (ED).Design/methodology/approach The authors apply content analysis methodology on Hungarian firms subject to mandatory reporting under the ED. The target variable in the multivariate model is the reporting quality (Qi) measured by a combined index.Findings The authors find that the ED had a moderate impact on Hungary's reporting quality because the overall disclosure of the sample only increased from low to medium level. The authors found that the value of intangible assets is a determinant of the reporting quality before and after the implementation of the ED. The findings support the effect of coercive isomorphism on Hungarian NFR practices.Research limitations/implications The limitation of the research is the number of firms examined. However, the authors covered the entire (non-bank) community of the Hungarian firms subject to the ED.Practical implications The authors suggest that reporting entities build upon the synergy between intellectual capital disclosure and NFR when elaborating their reporting strategies. The authors recommend the integration of ethical matters into corporate strategies and policies. Policymakers may consider the revision of the Hungarian regulations. The authors suggest academics embrace these topics in teaching.Originality/value To the best of the authors’ knowledge, this is the first study that investigates the impact of ED in the context of Hungary. The authors contribute to the existing literature by adding the results of the ridge regression model, highlighting the importance of intangible assets.

The association between accountant’s competences, organisational culture and integrated reporting practices

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Laura Orobia ◽  
Racheal Nturaninshaba ◽  
Juma Bananuka ◽  
Kasmwakat Reuel Dakung
Keyword(s):  
Civil Wars ◽  
Organisational Culture ◽  
Manufacturing Firms ◽  
Integrated Reporting ◽  
Manufacturing Firm ◽  
Content Type ◽  
Reporting Practices ◽  
Corporate Reporting ◽  
Reporting Framework ◽  
Study Results

Purpose This study aims to investigate the association between accountant’s competences, organisational culture and integrated reporting practices. Design/methodology/approach A questionnaire survey of 43 manufacturing firms in Mbarara district (South Western Uganda) was undertaken. The unit of inquiry was senior staff in the accounts office while the unit of analysis was the manufacturing firm. The study hypotheses were tested using regression analysis with the aid of Statistical Package for Social Sciences software version 21. Findings The findings revealed that while there is a positive and significant association between accountant’s competences and integrated reporting practices, the association between organisational culture and integrated reporting practices is insignificant. In the additional analysis, this study finds that accountant’s competences are significantly associated with all the content elements of an integrated report as enshrined in the International Integrated Reporting Framework of 2013. Surprisingly, organisational culture is not significantly associated with any of the content elements of an integrated report as enshrined in the International Integrated Reporting Framework of 2013. Practical implications To the academia, this study expands on the understanding of what matters for improvement in integrated reporting practices in an emerging economy such as Uganda whose history is characterised by civil wars and political unrest. Those in practice may use this study results to promote better reporting practices through the attraction of professional accountants with the necessary proficiencies in corporate reporting practices. The policymakers may also opt to mandate integrated reporting among manufacturing firms. Originality/value This study provides a first-time and in-depth understanding of the association between the accountant’s competences, organisational culture and integrated reporting practices using evidence from a developing African Country – Uganda.

Cultural values and consumers’ expectations and perceptions of service encounter quality

2016 ◽  
Vol 10 (1) ◽  
pp. 2-26 ◽  
Author(s):  
Masoud Karami ◽  
Mohamad Mehdi Maleki ◽  
Alan J. Dubinsky
Keyword(s):  
Cultural Values ◽  
Cosmetic Surgery ◽  
Discriminant Validity ◽  
Service Providers ◽  
Service Encounter ◽  
Future Research ◽  
Content Type ◽  
Mediating Role ◽  
The Impact

Purpose The purpose of the study is to explore the impact of cultural values on perceptions of service encounter quality by examining the potentially mediating role of service encounter expectations. Design/methodology/approach A questionnaire was designed to collect data from 30 cosmetic clinic patients in Tehran, Iran. Confirmatory factor analysis was used to test the convergent and discriminant validity of the scales. Moreover, path modeling and bootstrapping were implemented using Smartpls 2.0 (M3) software to analyze the collected data and to assess the research model (Figure 1). Findings Cultural values have a significant impact on both expectations and perceptions of service encounter quality. Moreover, findings show that expectations of service encounter quality have an impact on perceptions of service encounter quality. The mediating role of service encounter expectations was confirmed. Research limitations/implications There are additional issues that should be addressed about different aspects of service encounters in developing countries. Moreover, subcultures provide attractive context for service quality perception research; subcultures comprise a large consumer market having its own cultural values that future research could examine. Practical implications Healthcare service providers should understand the cultural values of patients that may differ by social demographic characteristics. Providing a service that enhances patient cultural values might enhance success in the plastic surgery market, because such surgery may assist one in gaining recognition and improving their relationships with others. Clinic managers should consider Iran as a developing country, with its considerable young population having modern self-oriented demands, should be a desirable market for cosmetics and beauty care products. Originality/value Using the concept of Schwartz’s basic human values model to assess consumers’ cultural values and its impact on service encounter quality was the study’s main contribution. Moreover, it is among few studies conducted in the cosmetic surgery industry in a developing country’s context.

scholarly journals The impact of culture on the innovative strength of nations

2017 ◽  
Vol 30 (7) ◽  
pp. 1149-1183 ◽  
Author(s):  
Piet Moonen
Keyword(s):  
Cultural Values ◽  
National Culture ◽  
Social Engineering ◽  
Management Style ◽  
European Countries ◽  
European Patent ◽  
Cultural Characteristics ◽  
Actual Performance ◽  
Content Type ◽  
The Impact

Purpose The purpose of this paper is to address the importance of cultural values, the organizational culture and management style for innovation. It also comparatively evaluates the actual performance of European countries in innovation. Design/methodology/approach In this paper, the theoretical frameworks of the well-known scholars Hofstede, House, Schwartz, Boisot and Cameron and Quinn are critically evaluated and compared with each other. In addition, the authors compared the cultural rankings and the actual performance in innovation of selected European countries. Before addressing the impact of culture on the innovative strength of nations, different definitions of innovation are being described. The theoretical framework developed on the basis of the six Hofstede dimensions is composed; the nine House dimensions are supplemented and the Schwartz values for innovative strength of nations are also being discussed. Culture as a knowledge asset, the positioning in information space and its influence on innovation following the theories of Boisot and the different cultural types as defined by Cameron and Quinn have been studied and evaluated. The performance of European countries in innovation has been evaluated on the basis of the Global Innovation Index, the patent applications to the European Patent Office and the European Innovation Scoreboard. Findings Based on literature review, one can conclude that there is a strong positive relation between several cultural characteristics of countries in question and their innovative strength. The results of this paper point out the importance of cultural values for innovation. Research limitations/implications This research has assessed the relation between national culture in general on the innovative strength of nations. Future research on which cultural characteristics and management styles have the strongest correlation with the innovative strength of nations could provide valuable insights for both scholars in this research field and for institutions and companies that wish to improve their innovative strength. Practical implications The results of this study provide us with the insight that the innovative strength of a nation or organization can be altered by changing (parts of) its culture. A practical implication of this finding is that a government can, for example, increase its nation’s innovative strength by encouraging cooperation between different institutions and by limiting rules and regulations which could cause barriers in the innovation process. Social implications A social implication of the findings of this study is the knowledge that to improve the innovative strength of a nation, a government needs to pursue a pro-active policy of transforming national culture, for example, by changing the educational system and decreasing the power distance between teachers and students. Such an effort to influence the national culture addresses interesting issues regarding the concept of social engineering. Originality/value By critically evaluating the qualitative cultural frameworks of several well-known scholars and relating them to quantitative statistical data about the innovative strength of nations, this study has combined the strengths of both qualitative and quantitative methodologies and produced non-trivial findings in an original manner.

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