A cross-country study on the effects of national culture on earnings management

• 成果类型: Article
• 署名作者: Han, Sam; Kang, Tony; Salter, Stephen; Yoo, Yong Keun
• 署名单位: State University System of Florida; Florida Atlantic University; Singapore Management University; University of Texas System; University of Texas El Paso; Korea University
• 刊物名称: JOURNAL OF INTERNATIONAL BUSINESS STUDIES
• ISSN/ISSBN: 0047-2506
• DOI: 10.1057/jibs.2008.78
• 发表日期: 2010
• 页码: 123-141
• 关键词: CROSS-CULTURAL MANAGEMENT; cultural frameworks; international financial reporting; earnings management; NATIONAL CULTURE; Investor protection; disclosure

摘要

This study hypothesizes and tests whether the degree to which managers exercise earnings discretion relates to their value system (i.e., culture) as well as the institutional features (i.e., legal environment) of their country. We find that uncertainty avoidance and individualism dimensions of national culture explain managers' earnings discretion across countries, and that this association varies with the strength of investor protection. This study extends prior literature by documenting that both national culture and institutional structure are important factors that explain corporate managers' earnings discretion practices around the world, and that the influences of these factors on earnings discretion are conditional on each other. Journal of International Business Studies (2010) 41, 123-141. doi:10.1057/jibs.2008.78