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Do Auditing and Reporting Standards Affect Firms’ Ethical Behaviours? The Moderating Role of National Culture

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Listed:
  • Yasemin Zengin Karaibrahimoglu

    (University of Groningen)

  • Burcu Guneri Cangarli

    (Izmir University of Economics)

Abstract

This paper aims to examine the impact of national cultural values on the relation between auditing and reporting standards and ethical behaviours of firms. Based on a regression analysis using data regarding 54 countries between the years 2007 and 2012, we found that the impact of the perceived strength of auditing and reporting standards on the perceived ethical behaviours of firms is accentuated when a society is characterized by low power distance and in-group collectivism, and high institutional collectivism, future orientation and uncertainty avoidance. Empirically, the study addresses a gap in the literature by highlighting the influence of national culture on the effectiveness of legal settings and regulations on ethical behaviours.

Suggested Citation

  • Yasemin Zengin Karaibrahimoglu & Burcu Guneri Cangarli, 2016. "Do Auditing and Reporting Standards Affect Firms’ Ethical Behaviours? The Moderating Role of National Culture," Journal of Business Ethics, Springer, vol. 139(1), pages 55-75, November.
    • Handle: RePEc:kap:jbuset:v:139:y:2016:i:1:d:10.1007_s10551-015-2571-y
    DOI: 10.1007/s10551-015-2571-y
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    References listed on IDEAS

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