The impact of cultural factors on the implementation of global accounting standards (IFRS) in a developing country

Mohammad Nurunnabi

Advances in accounting, 2015, vol. 31, issue 1, 136-149

Abstract: This longitudinal study investigates the impact of cultural factors on the implementation of global accounting standards (IFRS) in Bangladesh (a country with very different cultural values and governance systems in comparison to other developing countries, for example, the absence of mature democracy from its birth). Building on institutional theory, two rounds of in-depth interviews (2010 & 2011) are conducted; 1647 enforcement documents (1998–2010) and 332 court cases (1999–2010) are evaluated. The study contributes to the literature on socio-cultural factors regarding IFRS implementation in developing countries. The study confirms the pressures of coercive, mimetic and normative institutional isomorphism for the pursuit of legitimacy via social expectations. Contrary to prior research, a lack of enforcement and a high level of corruption are found during the periods of democratic government. The study has raised a serious question to the international policymakers (e.g., the IMF and World Bank) for the suitability of global accounting standards in developing countries.

Keywords: Accounting profession; Culture; Corruption; IFRS; Institutional Theory; Bangladesh (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:advacc:v:31:y:2015:i:1:p:136-149

DOI: 10.1016/j.adiac.2015.03.015

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