Earnings management, investor protection, and national culture

Journal of International Accounting Research

Volumn 6, Issue 2, 2007, Pages 35-54

  Nabar, Sandeep ^a   Boonlert u Thai, K K ^b  

^a OKLAHOMA STATE UNIVERSITY   (United States)

^b CHULALONGKORN UNIVERSITY   (Thailand)

Author keywords

Earnings management; Hofstede s cultural dimensions; Investor protection; National culture

Indexed keywords

EID: 77952825141     PISSN: 15426297     EISSN: 15588025     Source Type: Journal    
DOI: 10.2308/jiar.2007.6.2.35     Document Type: Article

References (37)

1. Ball, R., S. Kothari, and A. Robin. 2000 The effect of international institutional factors on properties of accounting earnings. Journal of Accounting and Economics 29 (1): 1–51
2. Barth, M., J. Elliott, and M. Finn. 1999 Market rewards associated with patterns of increasing earnings. Journal of Accounting Research 27 (2): 387–413
3. Belsley, D., E. Kuh, and R. Welsch. 1980 Regression Diagnostics: Identifying Influential Data and Sources of Collinearity. New York, NY: John Wiley.
4. Beneish, M. 1999 Incentives and penalties related to earnings overstatements that violate GAAP. The Accounting Review 74 (4): 425–458
5. Bhattacharya, U., H. Daouk, and M. Welker. 2003 The world price of earnings opacity. The Accounting Review 78 (3): 641–678
6. Bushman, R., J. Piotroski, and A. Smith. 2004 What determines corporate transparency? Journal of Accounting Research 42 (2): 207–252
7. De Mooij, M. 1998 Global Marketing and Advertising: Understanding Cultural Paradoxes. Thousand Oaks, CA: Sage Publications.
8. Dechow, P., R. Sloan, and A. Sweeney. 1996 Causes and consequences of earnings manipulation: An analysis of firms subject to enforcement actions by the SEC. Contemporary Accounting Research 13 (1): 1–36
9. Degeorge, F., J. Patel, and R. Zeckhauser. 1999 Earnings management to exceed thresholds. Journal of Business 72 (1): 1–33
10. Doupnik, T., and G. Tsakumis. 2004 A critical review of tests of Gray’s theory of cultural relevance and suggestions for future research. Journal of Accounting Literature 23: 1–48
11. Flynn, B., and B. Saladin. 2006 Relevance of Baldridge constructs in an international context: A study of national culture. Journal of Operations Management 24: 583–603
12. Frankel, J., and D. Romer. 1999 Does trade cause growth? American Economic Review 89 (3): 379–399
13. Fulkerson, C., S. Jackson, and G. Meek. 2004 The consequences of international accounting diversity on earnings management and earnings quality. Working paper, The University of Texas at San Antonio, San Antonio, TX.
14. Goel, A., and A. Thakor. 2003 Why do firms smooth earnings? Journal of Business 76 (1): 151–192
15. Gray, S. 1988 Towards a theory of cultural influence on the development of accounting systems internationally. Abacus 24 (1): 1–15
16. Hastings, H., and P. Hastings. 1981 Index to International Public Opinion 1980–1981. Westport, CN: Greenwood Press.
17. Healy, P., and J. Wahlen. 1999 A review of the earnings management literature and its implications for standard setting. Accounting Horizons 13 (4): 365–383
18. Hewett, K., R. Money, and S. Sharma. 2006 National culture and industrial buyer-seller relationships in the United States and Latin America. Journal of the Academy of Marketing Science 34 (3): 386–402
19. Hofstede, G. 1980 Culture’s Consequences: International Differences in Work Related Values. Beverly Hills, CA: Sage Publications.
20. Hofstede, G. 2001 Culture’s Consequences: Comparing Values, Behaviors, Institutions, and Organizations across Nations. Thousand Oaks, CA: Sage Publications.
21. Hope, O. 2003 Firm-level disclosures and the relative roles of culture and legal origin. Journal of International Financial Management and Accounting 14 (3): 218–248
22. House, R., P. Hanges, S. Ruiz-Quintanilla, P. Dorfman, M. Javidan, M. Dickson, V. Gupta, and Associates. 1999 Cultural influences on leadership and organizations: Project GLOBE. Advances in Global Leadership, Volume 1, edited by W. Mobley, M. Gessner, and V. Arnold, 171–233 Greenwich, CT: AI Press.
23. Kirkman, B., K. Lowe, and C. Gibson. 2006 A quarter century of culture’s consequences: A review of empirical research incorporating Hofstede’s framework. Journal of International Business Studies 37: 285–320
24. La Porta, R., F. Lopes-de-Silanes, A. Shleifer, and R. Vishny. 1998 Law and finance. Journal of Political Economy 106: 1113–1155
25. Leuz, C., D. Nanda, and P. Wysocki. 2003 Earnings management and investor protections: An international comparison. Journal of Financial Economics 69: 505–527
26. Licht, A., C. Goldschmidt, and S. Schwartz. 2001 Culture, law, and finance: Cultural dimensions of corporate governance laws. Working paper, Interdisciplinary Center, Herzliya, Israel.
27. Maddala, G. 1977 Econometrics. Tokyo, Japan: McGraw-Hill Kogakusha, Limited.
28. McSweeney, B. 2002.Hofstede’s model of national cultural differences and their consequences: A triumph of faith—A failure of analysis. Human Relations 55 (1): 89–118
29. Mikhail, M., B. Walther, and R. Willis. 2004 Earnings surprises and the cost of equity capital. Journal of Accounting, Auditing and Finance 19: 491–513
30. Offerman, L., and P. Hellmann. 1997 Culture’s consequences for leadership behavior. Journal of Cross-Cultural Psychology 28 (3): 342–351
31. Salter, S., and F. Niswander. 1995 Cultural influence on the development of accounting systems internationally: A test of Gray’s (1988) theory. Journal of International Business Studies 26 (2): 379–397
32. Schuler, R., and N. Rogovsky. 1998 Understanding compensation practice variations across firms: The impact of national culture. Journal of International Business Studies 29 (1): 159–177
33. Schwartz, S. 1994 Beyond individualism/collectivism: New cultural dimensions of values. Individualism and Collectivism: Theory, Method, and Applications, edited by U. Kim, H. Triandis, C. Kagitcibasi, S. Choi, and G. Yoon, 85–99. Thousand Oaks, CA: Sage Publications
34. Smith, P., and M. Bond. 1999 Social Psychology Across Cultures. Boston, MA: Allyn & Bacon.
35. Stulz, R., and R. Williamson. 2003 Culture, openness, and finance. Journal of Financial Economics 70: 3132–3349
36. Trueman, B., and S. Titman. 1988 An explanation for accounting income smoothing. Journal of Accounting Research 26 (3): 127–139
37. Tung, L., and M. Quaddus. 2002 Cultural differences explaining the differences in results in GSS: Implications for the next decade. Decision Support Systems 33: 177–199.