Accounting professionalism – a cultural perspective of developing countries

Abstract

Purpose -The purpose of this study is to examine the effects of culture on accounting professionalism in 12 developing countries by applying Gray's 1988 model and Hofstede 1980 cultural study. Design/methodology/approach -Connecting seven variables introduced within a testable model lead the finding to classify the twelve countries within a range from statutory control to professionalism. The data set was collected from 1996 to 2000 through different sources. Twelve developing countries have been chosen from the Middle East and South East Asia in this study and cluster analysis is used for analysing and classifying the countries. Findings -The results show while the Gray's hypothesis of statutory control is positively confirmed for Iran, and moderately for Bangladesh, Jordan, Oman, and Qatar, it is negatively rejected for Pakistan, Turkey, Malaysia, and Indonesia. Research limitations/implications -One limitation of this study is the improvised nature of the data set caused by the difficulty in collecting an extensive data set from developing countries. Practical implications -The findings of the study provides a useful source of information about accounting authority in those developing countries in which improve the knowledge and literature about the accounting practice internationally. Originality/value -The findings of the study are useful in harmonization process of the international accounting practices. Knowledge about important aspects of accounting setting of the countries is essential to realize the impediments of harmonization.

Discretionary Risks Disclosure: A Management Perspective

“…This result is consistent with several prior studies (e.g. Solomon et al 2000;Chand & White, 2006;Askary 2006;Haniffa & Cooke 2000). The individual expertise in a specific area or industry is expected to develop in line with the increased number of years of experience in the same area or industry and, consequently, influence their decision.…”

“…Solomon et al 2000;Chand & White 2006;Askary 2006;Haniffa & Cooke 2000). Results in Solomon et al (2000) reveal that respondents with several years of experience in the same industry have a stronger understanding of the process of the corporate governance system.…”

“…This, in turn, shapes the manager's discretion in disclosing voluntary information relative to compliance with the accounting standards requirements. Furthermore, the level of professionalism may influence the variation in the choice of financial reporting preparation to satisfy customers' needs (Askary 2006). In line with this argument, Haniffa and cooke (2000) hypothesised that directors with an academic background of accounting and business choose to disclose more comprehensive information in order to improve the corporate image and credibility of the management team.…”

“…However, several recent studies suggest that managers' ability to convey this information is influenced by their perception and understanding of the related issues (e.g. Solomon et al 2000;Chand & White 2006;Askary 2006;Haniffa & Cooke 2000). As such, it is important to understand the factors that affect managers' perception and understanding in promoting corporate transparency.…”

Culture and Accounting Practices in Indonesia

“…Culture is also considered as an essential element in our understanding of social system changes, such as the norms and values of the systems, the behaviour of the groups and their interaction across systems [11,4]. Hofstede's cultural study representing the most extensive research on cultural differences in various countries [12,2,3] consists of four underlying societal values which can be held by each country. These four dimensions are individualism versus collectivism; large versus small power distance; strong versus weak uncertainty avoidance and masculinity versus femininity.…”