Skip to main content
Log in

Cultural Influence on the Development of Accounting Systems Internationally: A Test of Gray's [1988] Theory

Journal of International Business Studies Aims and scope Submit manuscript

Abstract

This paper attempts to test the theory developed by Gray [1988] linking accounting values and systems with Hofstede's [1980] cultural constructs. Based on data from twenty-nine countries, it finds that while Gray's [1988] model has statistically significant explanatory power, it is best at explaining actual financial reporting practices and is relatively weak in explaining extant professional and regulatory structures from a cultural base. This paper further finds that both the development of financial markets and levels of taxation enhance the explanations offered by Gray [1988].

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

Author information

Authors and Affiliations

Authors

Additional information

*Stephen B. Salter is Assistant Professor of Accounting at Texas A&M University. He earned his Ph.D. at the University of South Carolina. His current research interest focuses on the role of cross-national differences in culture as they impact on accounting and control.

**Frederick Niswander is Assistant Professor of Accounting at East Carolina University. He earned his Ph.D. at Texas A&M University. His research focuses on accounting issues pertaining to international and domestic financial institutions.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Salter, S., Niswander, F. Cultural Influence on the Development of Accounting Systems Internationally: A Test of Gray's [1988] Theory. J Int Bus Stud 26, 379–397 (1995). https://doi.org/10.1057/palgrave.jibs.8490179

Download citation

  • Received:

  • Revised:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1057/palgrave.jibs.8490179

Navigation