scholarly journals The effect of Hofstede’s cultural dimensions on the degree of compliance with IFRS Standards in developing countries

2021 ◽  
Vol 19 (1) ◽  
pp. 146-158
Author(s):  
Souad Chaieb
Keyword(s):  
Developing Countries ◽  
Financial Reporting ◽  
Significant Relationship ◽  
Power Distance ◽  
Uncertainty Avoidance ◽  
Cultural Dimensions ◽  
Reporting Standards ◽  
Cultural Impact ◽  
Financial Reporting Standards ◽  
Three Components

This paper aims to highlight the cultural impact of Hofstede (1980) on the degree of compliance with International Financial Reporting Standards (IFRS) in 55 developing countries for the year 2014, based on the method adopted by Elad (2015) in order to identify IFRS Standards. Results show that culture (by means of three components, namely power distance, uncertainty avoidance, and masculinity) does not promote the degree of compliance with IFRS. However, only one significant relationship was found between individualism and the degree of compliance with IFRS Standards. This finding confirms Gray’s (1988) observation that individualism fosters a climate of transparency and professionalism

scholarly journals INTERNATIONAL FINANCIAL REPORTING STANDARDS ADOPTION, INVESTOR PROTECTION, AND FOREIGN PORTFOLIO INVESTMENT: A REVIEW

2021 ◽  
pp. 17-38
Keyword(s):  
Developing Countries ◽  
Financial Reporting ◽  
Investor Protection ◽  
International Financial Reporting Standards ◽  
Regulatory Environment ◽  
Portfolio Investment ◽  
Reporting Standards ◽  
Foreign Portfolio Investment ◽  
Financial Reporting Standards ◽  
Ifrs Adoption

This paper aims to analyze the impacts of International Financial Reporting Standards (IFRS) adoption on foreign portfolio investment (FPI) in relation to investor protection based on existing empirical literature. This study uses a historical approach and focuses on thirty-six relevant articles published in accounting and finance journals. The author provides a theoretical groundwork of the association between IFRS adoption and FPI and summarizes the results. The findings are critically analyzed by employing developed vs. developing country lens. The review study reveals that the effects of IFRS adoption on FPI significantly differ between developed and developing countries. Although the positive impact of IFRS adoption on FPI is documented in existing literature, not all countries (particularly developing countries), firms, and users have benefited or equally benefited from IFRS adoption regarding FPI. In addition, the positive impacts of IFRS adoption on FPI are associated with the country's regulatory environment, such as level of investor protection. The findings of the study suggest that developing countries should ensure a proper regulatory environment to reap the full benefits of IFRS adoption. This review contributes to the existing literature by providing a comparative analysis of IFRS adoption effect on FPI between developed and developing countries while also suggests future research avenues.

scholarly journals An empirical investigation of the culture-IFRS mutual relationship in Jordan

2014 ◽  
Vol 11 (4) ◽  
pp. 28-42
Author(s):  
Sawsan S. Halbouni ◽  
Mostafa Kamal Hassan
Keyword(s):  
Cultural Values ◽  
Financial Reporting ◽  
Emerging Economies ◽  
Empirical Investigation ◽  
Power Distance ◽  
Cultural Orientation ◽  
Cultural Dimensions ◽  
Cultural Dimension ◽  
Mutual Relationship ◽  
Financial Reporting Standards

This paper investigates the mutual relationship between Jordanian practitioners’ individualistic/collectivistic cultural orientation and the International Financial Reporting Standards (IFRS). It explores Jordanian accountants’ perception of the importance of IFRS, the IFRS-embedded cultural values attributed to those accountants, and whether adopting IFRS has contributed to change their cultural orientation. A three-part questionnaire distributed to 81 Jordanian accountants reveals that their cultural orientation is more collectivistic than individualistic. Moreover, accountants who have practiced only IFRS have a more individualistic orientation than those with long experience with the pre-IFRS standards. As the paper analyses only one cultural dimension (i.e., collectivistic versus individualistic), further research should explore other cultural dimensions, such as power distance, masculinity and uncertainty avoidance, religion and language, and their interrelationships with IFRS. Our findings should be relevant to other countries, especially those with developing or emerging economies, as they strive to improve the effectiveness of their corporate financial information.

Cultural Characteristics and Tourist Shopping Spending

2017 ◽  
Vol 42 (8) ◽  
pp. 1210-1231 ◽  
Author(s):  
Na Su ◽  
Hyounae Min ◽  
Ming-Hsiang Chen ◽  
Nancy Swanger
Keyword(s):  
Cultural Values ◽  
Cultural Distance ◽  
Power Distance ◽  
Uncertainty Avoidance ◽  
Cultural Dimensions ◽  
Curvilinear Relationship ◽  
Panel Regression ◽  
Cultural Impact ◽  
Optimal Point ◽  
Regression Tests

Although the cultural impact of tourism shopping has been extensively studied, prior research rarely related tourism shopping to specific cultural dimensions and distance, and tested the relationships statistically. This article fills this gap by investigating the comprehensive effects of Hofstede’s four cultural dimensions (power distance, individualism, masculinity, uncertainty avoidance) and cultural distance on shopping. In an analysis of Hong Kong’s inbound tourism, panel regression tests support power distance and masculinity as two key cultural values in determining a country’s tourist shopping spending in a destination, while the effects of individualism and uncertainty avoidance are marginally significant. A U-shaped curvilinear relationship is found for cultural distance and shopping spending ratio, suggesting that tourists’ allocation of monetary resource on shopping decreases with cultural distance first and increases later after an optimal point. A discussion of contributions and limitations is included.

Innovation Capability in High-Tech Companies

2012 ◽  
pp. 228-252
Author(s):  
Alper Ertürk
Keyword(s):  
Significant Relationship ◽  
Power Distance ◽  
Uncertainty Avoidance ◽  
Structural Equations ◽  
Cultural Dimensions ◽  
Information Technology Professionals ◽  
High Tech ◽  
Innovation Capability ◽  
Managerial Practices ◽  
Innovative Work

This chapter analyses the influence of organizational culture components, defined in Hofstede’s (1991, 2001) cultural framework (i.e., power distance, individualism/collectivism, assertiveness focus, and uncertainty avoidance), and empowerment on innovation capability, and examines the differentiations in their influence. The hypotheses are tested by applying Structural Equations Modeling (SEM) methodology to data collected from Information Technology professionals from high-tech companies. Results of the analyses have yielded that power distance is found to be negatively associated with both empowerment and innovation capability, whereas uncertainty avoidance is negatively related to innovation capability, but positively related to empowerment. Collectivism is found to be positively related only to empowerment; yet no significant relationship was revealed between collectivism and innovation capability. In addition, no significant relationship was found between assertiveness focus and empowerment or innovation capability. Empowerment is also found to be significantly and positively related to innovation capability. In terms of managerial practice, the study helps clarify the key role played by cultural dimensions in the process of shaping an empowering and innovative work environment. Findings also reveal that managers should focus on participative managerial practices (e.g. empowerment) to promote innovation capability of high-tech companies by considering the cultural tendencies of employees in the organization.

scholarly journals IFRS compliance and stock prices influence: evidence from Jordanian banks

2018 ◽  
Vol 13 (3) ◽  
pp. 24-35 ◽  
Author(s):  
Adel K. Almasarwah ◽  
Ahmad M. Omoush ◽  
Nizar Alsharari
Keyword(s):  
Developing Countries ◽  
Middle East ◽  
Financial Reporting ◽  
Firm Size ◽  
Stock Prices ◽  
Positive Relationship ◽  
Reporting Standards ◽  
Financial Reporting Standards ◽  
Prior Literature ◽  
The Impact

This study aims to examine the IFRS compliance in Jordanian banks and its relation to stock prices. The impact of compliance with International Financial Reporting Standards (IFRS) on stock prices in Jordanian banks is a rarely researched subject in accounting and finance, but whether IFRS compliance has a serious impact on stock prices, particularly in developing countries, is still unknown. Numerous factors in developing countries, such as cultural, political, and economic circumstances, can create different effects for IFRS compliance from those seen in developed countries.This paper concludes that IFRS compliance negatively affects stock prices, and firm size has a positive relationship with stock prices in Jordanian banks. The paper has significant implications for IFRS compliance research on stock prices, particularly across Jordanian banks, in responding to recent calls to bridge the gap that has been identified as a result of the revolutions in the Middle East. This study has been carried out in order to attract investors to avoid opposite results compared with prior literature that has studied the same subject. Hence, there are essential implications for the way in which successful IFRS compliance can be positively associated with stock prices in Jordanian banks.

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