This paper analyses the effect of Hofstede’s cultural dimensions on earnings management on 433 firms in 18 european countries, all reporting under IFRS. The results of multivariate regression reveal that only one cultural variable, namely Power Distance, has a significant effect on earnings management measured by discretionary accruals. In contrast, the scores for Individualism and Masculinity have no significant influence. These findings suggest that culture still has an influence on earnings management as suggested by previous studies, but is diminishing due to international accounting har-monization.
Inhaltsverzeichnis (Table of Contents)
- 1. Introduction and Background
- 1.1 Hofstede's cultural dimensions
- 1.2 Hypotheses
- 2. Research Design
- 2.1 Measurement of earnings management
- 2.2 Model specification
- 3. Sample Data and univariate analysis
- 3.1 Sample selection
- 3.2 Descriptive statistics
- 4. Results of the multivariate regression
- 4.1 Pooled sample
- 4.2 Results for each year
- 5. Conclusion
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This research aims to examine the influence of cultural dimensions on earnings management practices. The study focuses on Hofstede's cultural dimensions, specifically examining the relationship between cultural values and the propensity for firms to engage in earnings management.
- The impact of cultural dimensions on earnings management practices.
- The relationship between Hofstede's cultural dimensions and earnings management.
- The influence of cultural values on firm behavior.
- Empirical analysis of earnings management across different cultural contexts.
- The role of cultural factors in shaping financial reporting practices.
Zusammenfassung der Kapitel (Chapter Summaries)
The first chapter introduces the research topic and provides background information on Hofstede's cultural dimensions. It outlines the research question and hypotheses to be examined. Chapter two delves into the research design, outlining the methodology for measuring earnings management and specifying the model used in the analysis. Chapter three focuses on the sample data and univariate analysis, describing the sample selection process and presenting descriptive statistics. Chapter four presents the results of the multivariate regression analysis, both for the pooled sample and for each year individually.
Schlüsselwörter (Keywords)
This research explores the intersection of cultural dimensions, earnings management, and financial reporting. Key concepts include Hofstede's cultural dimensions, discretionary accruals, empirical analysis, multivariate regression, and financial reporting practices. The study investigates the influence of cultural factors on firm behavior and the potential impact of cultural values on earnings management practices.
- Citar trabajo
- Stephan Küster (Autor), 2014, Cultural Impact on Earnings Management, Múnich, GRIN Verlag, https://www.grin.com/document/276790
