Quality Manager Essay examples
International Banking Disclosures
George Hooia* aGriffith University, Australia
This paper investigates the influence of national culture on banking disclosures. Seventeen developed and developing countries with a representative sample of 37 listed domestic commercial banks were examined in 2004. Long-term orientation is found to be a non-significant cultural value with banking disclosures. The explanatory power for banking disclosures is found to be similar to the findings in Gray and Vint (1995) with a cross-section of industries. More importantly, this study recommends that long-term orientation should not be used as part of the cultural framework for disclosures due to bias data. Hence, …show more content…
The author would like to acknowledge the helpful comments and suggestions by Pak Auyeung, Tom Nguyen and an anonymous reviewer.
Asia-Pacific Journal of Accounting & Economics 14 (2007) 7–25
important issue because prior research has suggested that cultural differences may help to explain international differences in accounting systems and patterns of accounting development internationally (Chow and Wong-Boren, 1987; Cooke and Wallace, 1990; Gray,
1985, 1988; Harrison, 1993; Harrison and McKinnon, 1986; Perera, 1989). Specifically,
Gray and Vint investigated the disclosure element of Gray’s model which hypothesizes a link between national culture and accounting systems. Using a comprehensive database of disclosure practices covering 25 developed and developing countries, and applying linear regression analysis, their results support the hypothesis proposed by Gray (1988) that secrecy and its impact on disclosure behavior is a function of the cultural values identified by Hofstede (1980).
There are three main reasons for focusing only on the banking industry (Hooi, 2004).
First, it is considered to be the most important industry for the country’s economic and financial stability. Moreover, the International Accounting Standards Board (IASB)1 recognized its significance by issuing unique accounting standards, i.e. IAS30, IAS32 and
IAS39. Second, Saidenberg and Schuermann (2003)