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The impact of cultural factors on the implementation of global accounting standards (IFRS) in a developing country

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  • Nurunnabi, Mohammad

Abstract

This longitudinal study investigates the impact of cultural factors on the implementation of global accounting standards (IFRS) in Bangladesh (a country with very different cultural values and governance systems in comparison to other developing countries, for example, the absence of mature democracy from its birth). Building on institutional theory, two rounds of in-depth interviews (2010 & 2011) are conducted; 1647 enforcement documents (1998–2010) and 332 court cases (1999–2010) are evaluated. The study contributes to the literature on socio-cultural factors regarding IFRS implementation in developing countries. The study confirms the pressures of coercive, mimetic and normative institutional isomorphism for the pursuit of legitimacy via social expectations. Contrary to prior research, a lack of enforcement and a high level of corruption are found during the periods of democratic government. The study has raised a serious question to the international policymakers (e.g., the IMF and World Bank) for the suitability of global accounting standards in developing countries.

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  • Nurunnabi, Mohammad, 2015. "The impact of cultural factors on the implementation of global accounting standards (IFRS) in a developing country," Advances in accounting, Elsevier, vol. 31(1), pages 136-149.
    • Handle: RePEc:eee:advacc:v:31:y:2015:i:1:p:136-149
    DOI: 10.1016/j.adiac.2015.03.015
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    2. Nurunnabi, Mohammad & Donker, Han & Jermakowicz, Eva K., 2022. "The impact of mandatory adoption of IFRS in Saudi Arabia," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 49(C).
    3. Mohammad Nurunnabi, 2017. "IFRS and Saudi accounting standards: a critical investigation," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 14(3), pages 191-206, August.
    4. Reajmin Sultana, 2021. "Family ownership, information problem and firm performance," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 10(6), pages 73-82, September.
    5. Soumaya HERGLI, 2016. "The Impact Of Ifrs Norms On Internal Governance Mechanisms With Regard To Socio-Economic Context," Management and Marketing Journal, University of Craiova, Faculty of Economics and Business Administration, vol. 0(2), pages 243-263, November.
    6. repec:mth:ijafr8:v:8:y:2018:i:2:p:278-292 is not listed on IDEAS
    7. Wijayana, Singgih & Gray, Sidney J., 2018. "Capital market consequences of cultural influences on earnings: The case of cross-listed firms in the U.S. stock market," International Review of Financial Analysis, Elsevier, vol. 57(C), pages 134-147.

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