Cultural Influence on disclosure in financial reporting - The current scenario in India

Bikram Chatterjee, Monir Mir

    Research output: A Conference proceeding or a Chapter in BookConference contribution

    Abstract

    Following cultural theorists, accounting researchers argue that the nature of a country’s accounting system/practice is dependent on the culture of the country. For example, Indian culture is characterised by the upholding of a high level of secrecy. As a result Indian companies are not expected to disclose financial information beyond the minimum requirements of Indian accounting standards. In other words, it is not expected that they will provide voluntary disclosures sensitive to their activities. This study explores the status of disclosures of Indian companies taking related party transactions as the case. We argue that contrary to the views of cultural theorists, the related party disclosure status of Indian companies is more than the required minimum level of Indian accounting standard. Following this result, we argue that the recent changes in Indian economic policies towards a free market economy and globalisation have played a crucial role in refuting the arguments of the cultural theorists. We further argue that factors other than culture need to be considered to explain the nature and status of the accounting system/practice of a country, such as its economic and political environments.
    Original languageEnglish
    Title of host publicationAPIRA 2007 Conference Proceedings
    EditorsStewart Lawrence, Markus J Milne
    Place of PublicationNew Zealand
    PublisherEmerald
    Pages1-54
    Number of pages54
    Publication statusPublished - 2007
    EventThe Fifth Asia Pacific Interdisciplinary Research in Accounting Conference - Auckland, New Zealand
    Duration: 8 Jul 200710 Jul 2007

    Publication series

    NameQualitative Research in Accounting & Management
    PublisherEmerald Insight
    ISSN (Print)1176-6093

    Conference

    ConferenceThe Fifth Asia Pacific Interdisciplinary Research in Accounting Conference
    CountryNew Zealand
    CityAuckland
    Period8/07/0710/07/07

    Fingerprint

    Cultural influences
    Financial reporting
    Disclosure
    Scenarios
    India
    Systems practice
    Accounting systems
    Accounting standards
    Economic policy
    Related party transactions
    Secrecy
    Voluntary disclosure
    Market economy
    Financial information
    Globalization
    Political environment
    Factors
    Free market
    Economic environment

    Cite this

    Chatterjee, B., & Mir, M. (2007). Cultural Influence on disclosure in financial reporting - The current scenario in India. In S. Lawrence, & M. J. Milne (Eds.), APIRA 2007 Conference Proceedings (pp. 1-54). (Qualitative Research in Accounting & Management). New Zealand: Emerald.
    Chatterjee, Bikram ; Mir, Monir. / Cultural Influence on disclosure in financial reporting - The current scenario in India. APIRA 2007 Conference Proceedings. editor / Stewart Lawrence ; Markus J Milne. New Zealand : Emerald, 2007. pp. 1-54 (Qualitative Research in Accounting & Management).
    @inproceedings{379cd308c7de460f95025354e4f6a053,
    title = "Cultural Influence on disclosure in financial reporting - The current scenario in India",
    abstract = "Following cultural theorists, accounting researchers argue that the nature of a country’s accounting system/practice is dependent on the culture of the country. For example, Indian culture is characterised by the upholding of a high level of secrecy. As a result Indian companies are not expected to disclose financial information beyond the minimum requirements of Indian accounting standards. In other words, it is not expected that they will provide voluntary disclosures sensitive to their activities. This study explores the status of disclosures of Indian companies taking related party transactions as the case. We argue that contrary to the views of cultural theorists, the related party disclosure status of Indian companies is more than the required minimum level of Indian accounting standard. Following this result, we argue that the recent changes in Indian economic policies towards a free market economy and globalisation have played a crucial role in refuting the arguments of the cultural theorists. We further argue that factors other than culture need to be considered to explain the nature and status of the accounting system/practice of a country, such as its economic and political environments.",
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    Chatterjee, B & Mir, M 2007, Cultural Influence on disclosure in financial reporting - The current scenario in India. in S Lawrence & MJ Milne (eds), APIRA 2007 Conference Proceedings. Qualitative Research in Accounting & Management, Emerald, New Zealand, pp. 1-54, The Fifth Asia Pacific Interdisciplinary Research in Accounting Conference, Auckland, New Zealand, 8/07/07.

    Cultural Influence on disclosure in financial reporting - The current scenario in India. / Chatterjee, Bikram; Mir, Monir.

    APIRA 2007 Conference Proceedings. ed. / Stewart Lawrence; Markus J Milne. New Zealand : Emerald, 2007. p. 1-54 (Qualitative Research in Accounting & Management).

    Research output: A Conference proceeding or a Chapter in BookConference contribution

    TY - GEN

    T1 - Cultural Influence on disclosure in financial reporting - The current scenario in India

    AU - Chatterjee, Bikram

    AU - Mir, Monir

    PY - 2007

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    N2 - Following cultural theorists, accounting researchers argue that the nature of a country’s accounting system/practice is dependent on the culture of the country. For example, Indian culture is characterised by the upholding of a high level of secrecy. As a result Indian companies are not expected to disclose financial information beyond the minimum requirements of Indian accounting standards. In other words, it is not expected that they will provide voluntary disclosures sensitive to their activities. This study explores the status of disclosures of Indian companies taking related party transactions as the case. We argue that contrary to the views of cultural theorists, the related party disclosure status of Indian companies is more than the required minimum level of Indian accounting standard. Following this result, we argue that the recent changes in Indian economic policies towards a free market economy and globalisation have played a crucial role in refuting the arguments of the cultural theorists. We further argue that factors other than culture need to be considered to explain the nature and status of the accounting system/practice of a country, such as its economic and political environments.

    AB - Following cultural theorists, accounting researchers argue that the nature of a country’s accounting system/practice is dependent on the culture of the country. For example, Indian culture is characterised by the upholding of a high level of secrecy. As a result Indian companies are not expected to disclose financial information beyond the minimum requirements of Indian accounting standards. In other words, it is not expected that they will provide voluntary disclosures sensitive to their activities. This study explores the status of disclosures of Indian companies taking related party transactions as the case. We argue that contrary to the views of cultural theorists, the related party disclosure status of Indian companies is more than the required minimum level of Indian accounting standard. Following this result, we argue that the recent changes in Indian economic policies towards a free market economy and globalisation have played a crucial role in refuting the arguments of the cultural theorists. We further argue that factors other than culture need to be considered to explain the nature and status of the accounting system/practice of a country, such as its economic and political environments.

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    A2 - Milne, Markus J

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    Chatterjee B, Mir M. Cultural Influence on disclosure in financial reporting - The current scenario in India. In Lawrence S, Milne MJ, editors, APIRA 2007 Conference Proceedings. New Zealand: Emerald. 2007. p. 1-54. (Qualitative Research in Accounting & Management).