Skip to main content
main-content
Top

Hint

Swipe to navigate through the articles of this issue

01-04-2020 | Original Paper | Issue 2/2021

Journal of Business Ethics 2/2021

Do National Cultures Matter for External Audits? Evidence from Eastern Europe and the Middle East

Journal:
Journal of Business Ethics > Issue 2/2021
Author:
Boubacar Diallo
Important notes

Publisher's Note

Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Abstract

This study aims to examine the relationship between national cultural dimensions and the probability of a firm being externally audited. It uses a large set of representative micro-data from nearly 3000 firms across 34 industries in 13 countries in Eastern Europe and the Middle East over the period 2008–2010, and Schwartz’s cultural dimensions, namely autonomy, embeddedness, egalitarianism and hierarchy. The findings show that the relationship between firm audits and cultural autonomy and egalitarianism is strongly positive and statistically significant. Specifically, they show that an increase of one standard deviation (SD) in affective autonomy increases the probability that a firm will engage in an external audit by 3.37%. Along the same lines, a 1 SD increase in egalitarianism leads to a 8.36% increase in the likelihood of a firm engaging in an external audit. However, there is no clear evidence that embeddedness and hierarchy play a role in firms’ external auditing trends. These findings remain robust to the use of several confounding factors at the firm and country levels. This research highlights its uniqueness in the choice of national culture as a determinant for the likelihood of external audits.

Please log in to get access to this content

To get access to this content you need the following product:

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

  • über 69.000 Bücher
  • über 500 Zeitschriften

aus folgenden Fachgebieten:

  • Automobil + Motoren
  • Bauwesen + Immobilien
  • Business IT + Informatik
  • Elektrotechnik + Elektronik
  • Energie + Umwelt
  • Finance + Banking
  • Management + Führung
  • Marketing + Vertrieb
  • Maschinenbau + Werkstoffe
  • Versicherung + Risiko

Testen Sie jetzt 30 Tage kostenlos.

Springer Professional "Wirtschaft"

Online-Abonnement

Mit Springer Professional "Wirtschaft" erhalten Sie Zugriff auf:

  • über 58.000 Bücher
  • über 300 Zeitschriften

aus folgenden Fachgebieten:

  • Bauwesen + Immobilien
  • Business IT + Informatik
  • Finance + Banking
  • Management + Führung
  • Marketing + Vertrieb
  • Versicherung + Risiko




Testen Sie jetzt 30 Tage kostenlos.

Literature
About this article

Other articles of this Issue 2/2021

Journal of Business Ethics 2/2021 Go to the issue

Premium Partner

    Image Credits