Open AccessThe effect of Hofstede’s cultural dimensions on the degree of compliance with IFRS Standards in developing countries
Author(s) -
Souad Chaieb
Publication year - 2021
Publication title -
corporate ownership and control
Language(s) - English
Resource type - Journals
eISSN - 1810-0368
pISSN - 1727-9232
DOI - 10.22495/cocv19i1art11
Subject(s) - hofstede's cultural dimensions theory , uncertainty avoidance , compliance (psychology) , transparency (behavior) , individualism , accounting , business , political science , psychology , social psychology , collectivism , law
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