Towards a Theory of Cultural Influence on the Development of Accounting Systems Internationally

TLDR

Accounting systems differ worldwide and are believed to be shaped by environmental factors, yet the influence of culture has not been fully examined. This paper proposes four hypotheses linking cultural characteristics to accounting system development, professional regulation, and financial management attitudes, as a first step toward a theory of cultural influence. The hypotheses are presented without operationalization or empirical testing, leaving their validity unverified.

Abstract

Research has shown that accounting follows different patterns in different parts of the world. There have been claims that national systems are determined by environmental factors. In this context, cultural factors have not been fully considered. This paper proposes four hypotheses on the relationship between identified cultural characteristics and the development of accounting systems, the regulation of the accounting profession and attitudes towards financial management and disclosure. The hypotheses are not operationalized, and empirical tests have not been carried out. They are proposed here as a first step in the development of a theory of cultural influence on the development of accounting systems.