A cross-country study on the effects of national culture on earnings management

Sam Han, Tony Kang, Stephen Salter, Yong Keun Yoo

Research output: Contribution to journalArticlepeer-review

257 Citations (Scopus)


This study hypothesizes and tests whether the degree to which managers exercise earnings discretion relates to their value system (i.e., culture) as well as the institutional features (i.e., legal environment) of their country. We find that uncertainty avoidance and individualism dimensions of national culture explain managers' earnings discretion across countries, and that this association varies with the strength of investor protection. This study extends prior literature by documenting that both national culture and institutional structure are important factors that explain corporate managers' earnings discretion practices around the world, and that the influences of these factors on earnings discretion are conditional on each other.

Original languageEnglish
Pages (from-to)123-141
Number of pages19
JournalJournal of International Business Studies
Issue number1
Publication statusPublished - 2010 Jan


  • Cross-cultural management
  • Cultural frameworks
  • Disclosure
  • Earnings management
  • International financial reporting
  • Investor protection
  • National culture

ASJC Scopus subject areas

  • Business and International Management
  • General Business,Management and Accounting
  • Economics and Econometrics
  • Strategy and Management
  • Management of Technology and Innovation


Dive into the research topics of 'A cross-country study on the effects of national culture on earnings management'. Together they form a unique fingerprint.

Cite this