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The Impact Of Culture And Economic Factors On The Implementation Of Ifrs

Author

Listed:
  • Rogelio J. Cardona
  • Karen C. Castro-González
  • Carmen B. Ríos-Figueroa

Abstract

This paper examines the effects of culture and other economic factors on a country’s decision to implement International Financial Reporting Standards (IFRS). This work extends the previous literature by using a methodology that assigns an implementation score in different countries and its association with Hofstede’s cultural dimensions and economic factors. The results suggest that certain cultural dimensions and economic factors may affect a country’s decision to implement IFRS.

Suggested Citation

  • Rogelio J. Cardona & Karen C. Castro-González & Carmen B. Ríos-Figueroa, 2014. "The Impact Of Culture And Economic Factors On The Implementation Of Ifrs," Accounting & Taxation, The Institute for Business and Finance Research, vol. 6(2), pages 29-47.
    • Handle: RePEc:ibf:acttax:v:6:y:2014:i:2:p:29-47
    as

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    File URL: http://www.theibfr2.com/RePEc/ibf/acttax/at-v6n2-2014/AT-V6N2-2014-4.pdf
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    References listed on IDEAS

    as
    1. La Porta, Rafael & Lopez-de-Silanes, Florencio & Shleifer, Andrei & Vishny, Robert, 1999. "The Quality of Government," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 15(1), pages 222-279, April.
    2. Ding, Yuan & Jeanjean, Thomas & Stolowy, Herve, 2005. "Reply to discussion of "Why do national GAAP differ from IAS? The role of culture"," The International Journal of Accounting, Elsevier, vol. 40(4), pages 359-362.
    3. La Porta, Rafael & Florencio Lopez-de-Silanes & Andrei Shleifer & Robert W. Vishny, 1997. "Legal Determinants of External Finance," Journal of Finance, American Finance Association, vol. 52(3), pages 1131-1150, July.
    4. Rafael La Porta & Florencio Lopez-de-Silanes & Andrei Shleifer & Robert W. Vishny, 1998. "Law and Finance," Journal of Political Economy, University of Chicago Press, vol. 106(6), pages 1113-1155, December.
    5. Ding, Yuan & Jeanjean, Thomas & Stolowy, Herve, 2005. "Why do national GAAP differ from IAS? The role of culture," The International Journal of Accounting, Elsevier, vol. 40(4), pages 325-350.
    6. Rafael La Porta & Florencio Lopez‐De‐Silanes & Andrei Shleifer, 1999. "Corporate Ownership Around the World," Journal of Finance, American Finance Association, vol. 54(2), pages 471-517, April.
    7. Geert Hofstede, 1983. "The Cultural Relativity of Organizational Practices and Theories," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 14(2), pages 75-89, June.
    8. La Porta, Rafael & Lopez-de-Silanes, Florencio & Shleifer, Andrei & Vishny, Robert, 2000. "Investor protection and corporate governance," Journal of Financial Economics, Elsevier, vol. 58(1-2), pages 3-27.
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    More about this item

    Keywords

    International Financial Reporting Standards; Accounting Standards; Implementation; Convergence or Adoption; Cultural Dimensions; Economic Factors;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F60 - International Economics - - Economic Impacts of Globalization - - - General
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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