Influence of National Culture on Accounting Conservatism and Risk-Taking in the Banking Industry

• 成果类型: Article
• 署名作者: Kanagaretnam, Kiridaran; Lim, Chee Yeow; Lobo, Gerald J.
• 署名单位: York University - Canada; Singapore Management University; University of Houston System; University of Houston
• 刊物名称: ACCOUNTING REVIEW
• ISSN/ISSBN: 0001-4826
• DOI: 10.2308/accr-50682
• 发表日期: 2014
• 页码: 1115-1149
• 关键词: earnings quality; asymmetric timeliness; matter; FIRMS; BIAS; LAW

摘要

Using an international sample of banks and country-level indices for individualism and uncertainty avoidance as proxies for national culture, we study how differences in culture across countries affect accounting conservatism and bank risk-taking. Consistent with expectations, our cross-country analysis indicates that individualism is negatively (positively) related to conservatism (risk-taking) and uncertainty avoidance is positively (negatively) related to conservatism (risk-taking). We also find that cultures that encourage higher risk-taking experienced more bank failures and bank troubles during the recent financial crisis.