The impact of culture on accounting: does Gray's model apply to Iran?
Zahra Dianati Dilami
Mohammad S. Bazaz
Purpose – The purpose of this paper is to examine the relationships between cultural values (as defined by Hofstede) and accounting values (as described by Gray) in Iran. Design/methodology/approach – The appropriate data for a period of ten years (1993-2002) were compiled from economical magazines, the Iran Statistical Yearbook, financial statements, and auditors’ reports of the firms listed in Tehran Stock Exchange. LISREL was used to analyze the data. Findings – The results of this research show the relationships among cultural and accounting values in Iran and found support for more than one-half of Gray's hypotheses. Numerous issues, such as the abnormal evolution of accounting in Iran, the impact of unstable economics, inappropriate use of accounting methods and procedures which are common among developing countries, the impact of governmental ownership, and the lack of well developed capital market tradition may be some determining factors as to why several of Gray's hypotheses were not supported through this research. Originality/value – This paper analyzes the effect of Iran's cultural changes on accounting practice and encourages research that examines all dimensions of accounting in Iran and other developing countries.
Accounting, Individual behaviour, Iran, National cultures, Professional services, Uncertainty management
In order to set up a list of libraries that you have access to,
you must first login
or sign up.
Then set up a personal list of libraries from your profile page by
clicking on your user name at the top right of any screen.