The Impact of Culture on Accounting Disclosures: Some International Evidence

Abstract

This paper reports on the results of empirical tests of the relationship between culture and accounting disclosures in an international context. Using a comprehensive data base of disclosure practices covering 27 countries, and applying linear regression analysis, the results support the hypothesis proposed by Gray (1988) that secrecy and its impact on disclosure behaviour is a function of the cultural (societal) values identified by Hofstede (1980). However, it was found that this relationship was more significant in respect of the values of “uncertainty avoidance” and “individualism” as compared to those of “power distance” and “masculinity”.