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

Yasemin Zengin-Karaibrahimoglu and Burcu Guneri Cangarli ()
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Burcu Guneri Cangarli: Izmir University of Economics

Journal of Business Ethics, 2016, vol. 139, issue 1, No 5, 55-75

Abstract: 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.

Keywords: Ethical behaviour; Strength of auditing and reporting standards; Culture; GLOBE (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (9)

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DOI: 10.1007/s10551-015-2571-y

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