IDEAS home Printed from https://ideas.repec.org/a/taf/raaexx/v17y2010i2p99-127.html
   My bibliography  Save this article

Effect of Cultural Environmental and Accounting Regulation on Earnings Management: A Multiple Year-Country Analysis

Author

Listed:
  • Liming Guan
  • Hamid Pourjalali

Abstract

We analyze the effect of cultural values and disclosure and earnings management scores on earnings management in 27 countries. The results indicate that debt-to-equity ratio (total assets) affects the earnings management upwards (downwards). These results are consistent with prior studies. Uncertainty Avoidance also affects the direction of earnings management downwards. Other cultural values, such as Individualism, Power Distance, and Masculinity, have a significant effect on the magnitude of earnings management. The results indicate that the higher the values of these variables, the higher the magnitude of earnings management. Furthermore, Disclosure Index has a significant effect on the magnitude of earnings management.

Suggested Citation

  • Liming Guan & Hamid Pourjalali, 2010. "Effect of Cultural Environmental and Accounting Regulation on Earnings Management: A Multiple Year-Country Analysis," Asia-Pacific Journal of Accounting & Economics, Taylor & Francis Journals, vol. 17(2), pages 99-127.
    • Handle: RePEc:taf:raaexx:v:17:y:2010:i:2:p:99-127
    DOI: 10.1080/16081625.2010.9720856
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/16081625.2010.9720856
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/16081625.2010.9720856?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Amy Lau & Ronald Ma, 1997. "A Broad Perspective on Financial Reporting in Pacific Asia," World Scientific Book Chapters, in: Ronald Ma (ed.), Financial Reporting In The Pacific Asia Region, chapter 4, pages 55-92, World Scientific Publishing Co. Pte. Ltd..
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Muhammad Rofiqul Islam & Abdullah Al Mehdi, 2024. "Impacts of National Cultures on Managerial Decisions of Engaging in Core Earnings Management," Papers 2407.16854, arXiv.org.
    2. Heinz, Philip & Patel, Chris & Hellmann, Andreas, 2013. "Some theoretical and methodological suggestions for studies examining accountants' professional judgments and earnings management," Advances in accounting, Elsevier, vol. 29(2), pages 299-311.
    3. Rabeb RIAHI, 2017. "Pratique de gestion des résultats et culture nationale. Quel lien ?," Journal of Academic Finance, RED research unit, university of Gabes, Tunisia, vol. 8(2), December.
    4. Guangfan Sun & Changwei Guo & Bin Li & Honglei Li, 2023. "Cultural inclusivity and corporate social responsibility in China," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-12, December.
    5. Claudia R. Williamson, 2021. "Culture, democracy and regulation," Constitutional Political Economy, Springer, vol. 32(1), pages 98-126, March.
    6. Choi, Ahrum & Jia, Jingyi & Song, Byron Y. & Zhou, Gaoguang, 2024. "Cultural tightness and financial reporting behavior around the world," Journal of Business Research, Elsevier, vol. 178(C).
    7. Houqe, Muhammad Nurul & Monem, Reza M. & Tareq, Mohammad & van Zijl, Tony, 2016. "Secrecy and the impact of mandatory IFRS adoption on earnings quality in Europe," Pacific-Basin Finance Journal, Elsevier, vol. 40(PB), pages 476-490.
    8. Fuad, Fuad & Juliarto, Agung & Harto, Puji, 2019. "Does IFRS convergence really increase accounting qualities?Emerging market evidence," Journal of Economics, Finance and Administrative Science, Universidad ESAN, vol. 24(48), pages 205-220.
    9. Rabeb RIAHI, 2017. "Pratique de gestion des résultats et culture nationale. Quel lien ?," Journal of Academic Finance, RED research unit, university of Gabes, Tunisia, vol. 8(2), December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Joanne Horton & Richard Macve, 2000. "‘Fair Value’ for Financial Instruments: How Erasing Theory is Leading to Unworkable Global Accounting Standards for Performance Reporting," Australian Accounting Review, CPA Australia, vol. 10(21), pages 26-39, July.
    2. Azhar Abdul Rahman, PhD & Ku Nor Izah Ku Ismail, PhD & Wan Nordin Wan Hussin, PhD, 2011. "The Influence of Corporate Governance And Firm’s Characteristics on The Extent of Compliance With Masb Standards Among Malaysian Listed Companies," International Journal of Business and Social Research, LAR Center Press, vol. 1(1), pages 153-173, December.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:raaexx:v:17:y:2010:i:2:p:99-127. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/raae20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.