This study examines the factors shaping the choices of countries in the Middle East and North Africa (MENA) region in adopting International Financial Reporting Standards (IFRS), using a neo-institutional isomorphism framework. Analyzing data from 19 countries spanning two decades (1996–2015) and comprising 380 country-year observations, this research reveals that internal coercive and mimetic institutional pressures are key influencers behind IFRS adoption in the region. Specifically, governance quality improvement and openness to international trade emerge as crucial determinants. This highlights the predominant role of social and political contexts over economic motivations in driving IFRS adoption in the MENA region. Furthermore, the findings indicate that foreign aid and internal accounting have minimal impact on IFRS adoption in the region.
{"title":"Factors influencing the adoption of IFRS in the MENA region: A neo-institutional approach","authors":"Abdulbaset Ab. Klish , Moade Shubita , Kamil Omoteso , Junjie Wu","doi":"10.1016/j.intaccaudtax.2024.100674","DOIUrl":"10.1016/j.intaccaudtax.2024.100674","url":null,"abstract":"<div><div>This study examines the factors shaping the choices of countries in the Middle East and North Africa (MENA) region in adopting International Financial Reporting Standards (IFRS), using a neo-institutional isomorphism framework. Analyzing data from 19 countries spanning two decades (1996–2015) and comprising 380 country-year observations, this research reveals that internal coercive and mimetic institutional pressures are key influencers behind IFRS adoption in the region. Specifically, governance quality improvement and openness to international trade emerge as crucial determinants. This highlights the predominant role of social and political contexts over economic motivations in driving IFRS adoption in the MENA region. Furthermore, the findings indicate that foreign aid and internal accounting have minimal impact on IFRS adoption in the region.</div></div>","PeriodicalId":53221,"journal":{"name":"Journal of International Accounting Auditing and Taxation","volume":"58 ","pages":"Article 100674"},"PeriodicalIF":3.3,"publicationDate":"2024-12-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143142849","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This study extends our understanding of the association between key audit matter (KAM) disclosures and investor sentiment in Thailand, an advanced emerging market. Thailand is characterized by a culture of high secrecy, strong uncertainty avoidance, and strong societal trust. The primary aim of this study is to analyze the local language versions of auditors’ reports, as they may differ from English-translated versions due to cultural and linguistic variations. To achieve this, we compiled a bag of Thai words to analyze the content of KAM sections in 334 publicly listed Thai companies during the period 2016–2017. We found that investor sentiment responds marginally to only three categories of KAMs and neutral words within KAM sections. However, investors do not react to the number of KAMs or to words associated with negativity, positivity, litigation, or uncertainty. These results suggest that KAM disclosures hold limited information value for investors. Regulators and standard setters successfully educated investors and other stakeholders about KAM disclosures before their implementation. However, in a high-secrecy environment, the use of neutral language in KAM sections triggers investor skepticism, leading to stock price discounts.
{"title":"Analysis of non-English key audit matters: Do key audit matters influence investor sentiment?","authors":"Weerapong Kitiwong, Erboon Ekasingh, Naruanard Sarapaivanich","doi":"10.1016/j.intaccaudtax.2024.100670","DOIUrl":"10.1016/j.intaccaudtax.2024.100670","url":null,"abstract":"<div><div>This study extends our understanding of the association between key audit matter (KAM) disclosures and investor sentiment in Thailand, an advanced emerging market. Thailand is characterized by a culture of high secrecy, strong uncertainty avoidance, and strong societal trust. The primary aim of this study is to analyze the local language versions of auditors’ reports, as they may differ from English-translated versions due to cultural and linguistic variations. To achieve this, we compiled a bag of Thai words to analyze the content of KAM sections in 334 publicly listed Thai companies during the period 2016–2017. We found that investor sentiment responds marginally to only three categories of KAMs and neutral words within KAM sections. However, investors do not react to the number of KAMs or to words associated with negativity, positivity, litigation, or uncertainty. These results suggest that KAM disclosures hold limited information value for investors. Regulators and standard setters successfully educated investors and other stakeholders about KAM disclosures before their implementation. However, in a high-secrecy environment, the use of neutral language in KAM sections triggers investor skepticism, leading to stock price discounts.</div></div>","PeriodicalId":53221,"journal":{"name":"Journal of International Accounting Auditing and Taxation","volume":"58 ","pages":"Article 100670"},"PeriodicalIF":3.3,"publicationDate":"2024-12-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143143480","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-12-12DOI: 10.1016/j.intaccaudtax.2024.100673
Phuong Nguyen Trang Doan , Mieke Dingenen , Ann Gaeremynck , Piet Sercu
We examine whether employee representation on a firm’s board of directors (ERB) has an impact on aggressiveness in corporate financial and tax reporting. Using an international sample of 3,450 firms across 29 countries over the period 2012–2021, we find that ERB firms practice less income-increasing accruals management, real-earnings management, and tax avoidance — consistent with a monitoring role for employee directors. Second, we present evidence that, at least for tax issues, this monitoring works even better when the board has desirable characteristics such as more independent directors, a single-mandate chief executive officer (CEO), and a majority shareholder. Third, we find that the monitoring effect is unaffected by the voluntary or law-imposed nature of ERB, but the useful interactions between the ERB effect and the desirable board characteristics are solely traced to the voluntary arrangements. Lastly, cross-sectional analyses show that younger, female, and employee directors without shares are typically better monitors.
{"title":"Aggressiveness in corporate financial and tax reporting:Do employee directors matter? A cross-country study","authors":"Phuong Nguyen Trang Doan , Mieke Dingenen , Ann Gaeremynck , Piet Sercu","doi":"10.1016/j.intaccaudtax.2024.100673","DOIUrl":"10.1016/j.intaccaudtax.2024.100673","url":null,"abstract":"<div><div>We examine whether employee representation on a firm’s board of directors (ERB) has an impact on aggressiveness in corporate financial and tax reporting. Using an international sample of 3,450 firms across 29 countries over the period 2012–2021, we find that ERB firms practice less income-increasing accruals management, real-earnings management, and tax avoidance — consistent with a monitoring role for employee directors. Second, we present evidence that, at least for tax issues, this monitoring works even better when the board has desirable characteristics such as more independent directors, a single-mandate chief executive officer (CEO), and a majority shareholder. Third, we find that the monitoring effect is unaffected by the voluntary or law-imposed nature of ERB, but the useful interactions between the ERB effect and the desirable board characteristics are solely traced to the voluntary arrangements. Lastly, cross-sectional analyses show that younger, female, and employee directors without shares are typically better monitors.</div></div>","PeriodicalId":53221,"journal":{"name":"Journal of International Accounting Auditing and Taxation","volume":"58 ","pages":"Article 100673"},"PeriodicalIF":3.3,"publicationDate":"2024-12-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143143477","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This paper aims to enrich current understandings of the contribution of the Journal of Accounting, Auditing and Taxation (JIAAT) in the period 2011 to 2022. First, we examine the development of the composition of the editorial board (EB). In terms of size, gender diversity, and geographical diversity, we demonstrate that the EB has greatly expanded, which has facilitated the internationalization of topics and perspectives. Second, we undertake a literature review of the 212 papers published over this period. We show how the published works have offered a great knowledge background for academics and practitioners. Further, we identify research trends and patterns and in addition propose avenues for future research.
{"title":"An analysis of JIAAT editorial board composition and research review","authors":"Stergios Leventis , Emmanouil Dedoulis , Stavroula Kourdoumpalou","doi":"10.1016/j.intaccaudtax.2024.100672","DOIUrl":"10.1016/j.intaccaudtax.2024.100672","url":null,"abstract":"<div><div>This paper aims to enrich current understandings of the contribution of the Journal of Accounting, Auditing and Taxation (JIAAT) in the period 2011 to 2022. First, we examine the development of the composition of the editorial board (EB). In terms of size, gender diversity, and geographical diversity, we demonstrate that the EB has greatly expanded, which has facilitated the internationalization of topics and perspectives. Second, we undertake a literature review of the 212 papers published over this period. We show how the published works have offered a great knowledge background for academics and practitioners. Further, we identify research trends and patterns and in addition propose avenues for future research.</div></div>","PeriodicalId":53221,"journal":{"name":"Journal of International Accounting Auditing and Taxation","volume":"58 ","pages":"Article 100672"},"PeriodicalIF":3.3,"publicationDate":"2024-12-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143143482","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-12-07DOI: 10.1016/j.intaccaudtax.2024.100671
Sebastian Hoffmann
This study investigates the role of technical staff within a global standard setting organization, the International Accounting Standards Board (IASB). Building on publicly available documents, interviews with staff and Board members, and observations of Board meetings, staff practices of standard setting are explored in light of their impact on the standard setter’s decision-making. It is found that the technical staff have individual approaches to their work on standard setting projects. They find themselves constrained by, but also shaping, the organizational structures of the IASB. In the course of their project work they become specialist experts in both the project’s technical issues as well as procedural processes. This makes the staff powerful agents within the realm of international accounting standard setting, because their efforts influence how the IASB moves through its work plan. It also explains why they may be a preferred target for lobbying activities and how they contribute to the standard setter’s public reputation. Notably, staff practices are consistent over time and across projects. In summary, it is suggested that the IASB’s technical staff are a critical resource of international accounting standard setting.
{"title":"The role and power of technical staff in international accounting standard setting","authors":"Sebastian Hoffmann","doi":"10.1016/j.intaccaudtax.2024.100671","DOIUrl":"10.1016/j.intaccaudtax.2024.100671","url":null,"abstract":"<div><div>This study investigates the role of technical staff within a global standard setting organization, the International Accounting Standards Board (IASB). Building on publicly available documents, interviews with staff and Board members, and observations of Board meetings, staff practices of standard setting are explored in light of their impact on the standard setter’s decision-making. It is found that the technical staff have individual approaches to their work on standard setting projects. They find themselves constrained by, but also shaping, the organizational structures of the IASB. In the course of their project work they become specialist experts in both the project’s technical issues as well as procedural processes. This makes the staff powerful agents within the realm of international accounting standard setting, because their efforts influence how the IASB moves through its work plan. It also explains why they may be a preferred target for lobbying activities and how they contribute to the standard setter’s public reputation. Notably, staff practices are consistent over time and across projects. In summary, it is suggested that the IASB’s technical staff are a critical resource of international accounting standard setting.</div></div>","PeriodicalId":53221,"journal":{"name":"Journal of International Accounting Auditing and Taxation","volume":"58 ","pages":"Article 100671"},"PeriodicalIF":3.3,"publicationDate":"2024-12-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143143481","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-12-07DOI: 10.1016/j.intaccaudtax.2024.100669
Nurlan S. Orazalin , Collins G. Ntim , John Kalimilo Malagila
We explore the effects of corporate governance and national governance quality on corporate biodiversity reporting and investigate whether national governance quality moderates the relationship between corporate governance and biodiversity reporting practices. Using a sample of global firms across 36 countries over the 2009 to 2020 period, we find that the overall quality of corporate governance and individual governance dimensions, such as management effectiveness, corporate social responsibility (CSR) practices, and shareholder treatment are positively associated with biodiversity reporting. Our results suggest that firms operating in countries with strong national governance systems tend to disseminate extensive biodiversity information. We also find that national governance quality positively moderates the relationships of CSR practices and shareholder treatment with biodiversity reporting practices, but has no impact on the link between management effectiveness and biodiversity reporting. Our findings have several implications for regulators, policymakers, and organizational stakeholders. Overall, our results support the dynamic capabilities view in that internal and external governance mechanisms and systems can motivate and compel boards of directors and management teams to develop dynamic capabilities, engage in sustainability practices, and enhance biodiversity transparency.
{"title":"Corporate governance, national governance quality, and biodiversity reporting: Global evidence","authors":"Nurlan S. Orazalin , Collins G. Ntim , John Kalimilo Malagila","doi":"10.1016/j.intaccaudtax.2024.100669","DOIUrl":"10.1016/j.intaccaudtax.2024.100669","url":null,"abstract":"<div><div>We explore the effects of corporate governance and national governance quality on corporate biodiversity reporting and investigate whether national governance quality moderates the relationship between corporate governance and biodiversity reporting practices. Using a sample of global firms across 36 countries over the 2009 to 2020 period, we find that the overall quality of corporate governance and individual governance dimensions, such as management effectiveness, corporate social responsibility (CSR) practices, and shareholder treatment are positively associated with biodiversity reporting. Our results suggest that firms operating in countries with strong national governance systems tend to disseminate extensive biodiversity information. We also find that national governance quality positively moderates the relationships of CSR practices and shareholder treatment with biodiversity reporting practices, but has no impact on the link between management effectiveness and biodiversity reporting. Our findings have several implications for regulators, policymakers, and organizational stakeholders. Overall, our results support the dynamic capabilities view in that internal and external governance mechanisms and systems can motivate and compel boards of directors and management teams to develop dynamic capabilities, engage in sustainability practices, and enhance biodiversity transparency.</div></div>","PeriodicalId":53221,"journal":{"name":"Journal of International Accounting Auditing and Taxation","volume":"58 ","pages":"Article 100669"},"PeriodicalIF":3.3,"publicationDate":"2024-12-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143143027","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This study investigates the effects of religiosity and secrecy culture on corporate social responsibility (CSR) report assurance practices. It explores what drives companies whose reports are awarded high CSR scores to have assured reports and to select audit firm assurors. Using a 2015 through 2019 sample of companies that won the 2020 S&P Global’s Sustainability Awards in 24 countries, the results show that firms in countries with strong religious adherence are less likely to have their CSR reports assured, and if these reports are assured, then less likely to select audit firms as their assurors. Interestingly, among countries with strong religious adherence, the less likelihood of having CSR reports assured is more pronounced in countries with a high-secrecy environment. However, if firms in a high-secrecy environment have CSR reports assured, they are more likely to hire audit firms. This is likely due to the external pressure on companies to enhance the credibility of their reports and build their corporate reputation.
{"title":"Religiosity, secrecy culture, and corporate social responsibility report assurance","authors":"Kriengkrai Boonlert-U-Thai , Weerapong Kitiwong , Muttanachai Suttipun","doi":"10.1016/j.intaccaudtax.2024.100667","DOIUrl":"10.1016/j.intaccaudtax.2024.100667","url":null,"abstract":"<div><div>This study investigates the effects of religiosity and secrecy culture on corporate social responsibility (CSR) report assurance practices. It explores what drives companies whose reports are awarded high CSR scores to have assured reports and to select audit firm assurors. Using a 2015 through 2019 sample of companies that won the 2020 S&P Global’s Sustainability Awards in 24 countries, the results show that firms in countries with strong religious adherence are less likely to have their CSR reports assured, and if these reports are assured, then less likely to select audit firms as their assurors. Interestingly, among countries with strong religious adherence, the less likelihood of having CSR reports assured is more pronounced in countries with a high-secrecy environment. However, if firms in a high-secrecy environment have CSR reports assured, they are more likely to hire audit firms. This is likely due to the external pressure on companies to enhance the credibility of their reports and build their corporate reputation.</div></div>","PeriodicalId":53221,"journal":{"name":"Journal of International Accounting Auditing and Taxation","volume":"58 ","pages":"Article 100667"},"PeriodicalIF":3.3,"publicationDate":"2024-12-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143143478","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This paper investigates the relationship between access to finance and corporate tax avoidance. Using a sample of 63,443 firm-year observations from 37 countries, the results reveal that firms suffering from limited access to finance are more inclined to engage in tax avoidance practices. This result supports the pecking-order theory and suggests that managers may rely on cash flows generated from tax-saving activities to finance their investments. The results also show that increased levels of financial constraints are positively associated with tax avoidance in the presence of high economic policy uncertainty (EPU). We also show that this effect is more prevalent in firms operating in countries with high government debt levels, and with weak investor protection. Our results are robust after addressing endogeneity concerns and using different measures of financial constraints, tax avoidance, and additional control variables.
{"title":"Access to finance and corporate tax avoidance: International evidence","authors":"Ramzi Benkraiem , Safa Gaaya , Faten Lakhal , Merve Kilic","doi":"10.1016/j.intaccaudtax.2024.100668","DOIUrl":"10.1016/j.intaccaudtax.2024.100668","url":null,"abstract":"<div><div>This paper investigates the relationship between access to finance and corporate tax avoidance. Using a sample of 63,443 firm-year observations from 37 countries, the results reveal that firms suffering from limited access to finance are more inclined to engage in tax avoidance practices. This result supports the pecking-order theory and suggests that managers may rely on cash flows generated from tax-saving activities to finance their investments. The results also show that increased levels of financial constraints are positively associated with tax avoidance in the presence of high economic policy uncertainty (EPU). We also show that this effect is more prevalent in firms operating in countries with high government debt levels, and with weak investor protection. Our results are robust after addressing endogeneity concerns and using different measures of financial constraints, tax avoidance, and additional control variables.</div></div>","PeriodicalId":53221,"journal":{"name":"Journal of International Accounting Auditing and Taxation","volume":"58 ","pages":"Article 100668"},"PeriodicalIF":3.3,"publicationDate":"2024-12-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143143479","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Relying on institutional theory, this article presents external stakeholders’ perspectives on the factors that influence audit committees’ independence and reliability in a weak institutional context. We conducted 37 semi-structured interviews with two critical external stakeholder groups (27 experienced professional investors and 10 senior regulatory officials) in the Nigerian banking sector. Our study finds that the independence of audit committee members, being an ‘a posteriori’ rather than an ‘a priori’ accountability verification, bears institutional contextual bias. Consequently, we unpack five factors, namely allegiance to the dominant owner, poor professional conduct, corruption, nepotism and opportunism, and impunity, that influence external stakeholders’ perception of the reliability of the audit committee’s independence in Nigeria.
{"title":"Reliability of the audit committee in weak institutional environments: Evidence from Nigeria","authors":"Folajimi Ashiru , Emmanuel Adegbite , Jane Frecknall-Hughes , Olabisi Daodu","doi":"10.1016/j.intaccaudtax.2024.100657","DOIUrl":"10.1016/j.intaccaudtax.2024.100657","url":null,"abstract":"<div><div>Relying on institutional theory, this article presents external stakeholders’ perspectives on the factors that influence audit committees’ independence and reliability in a weak institutional context. We conducted 37 semi-structured interviews with two critical external stakeholder groups (27 experienced professional investors and 10 senior regulatory officials) in the Nigerian banking sector. Our study finds that the independence of audit committee members, being an ‘a posteriori’ rather than an ‘a priori’ accountability verification, bears institutional contextual bias. Consequently, we unpack five factors, namely allegiance to the dominant owner, poor professional conduct, corruption, nepotism and opportunism, and impunity, that influence external stakeholders’ perception of the reliability of the audit committee’s independence in Nigeria.</div></div>","PeriodicalId":53221,"journal":{"name":"Journal of International Accounting Auditing and Taxation","volume":"57 ","pages":"Article 100657"},"PeriodicalIF":3.3,"publicationDate":"2024-10-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142578453","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-10-15DOI: 10.1016/j.intaccaudtax.2024.100656
Shinji Horiguchi , Roszaini Haniffa , Mohammad Hudaib
This study addresses a gap in the literature by exploring whistleblowing intentions in a society where social harmony, respectfulness, and conformity to rules and norms are perceived as important. A survey of Japanese public accountants indicates attitudes, independence commitment, perceived behavioral control, personal cost of reporting, and personal responsibility for reporting significantly influence internal whistleblowing intentions. Contrary to previous studies, we found personal cost of reporting has significant positive relationship with internal whistleblowing intention, which is a reflection of the unique Japanese work culture. Furthermore, perceived organizational support has a significant positive relationship with internal whistleblowing, signifying that Japanese public accountants feel comfortable to blow the whistle internally when there is high support from the organization. However, the interactive results reveal a significant negative relationship between perceived organizational support and internal whistleblowing, suggesting that despite organizational values that support internal whistleblowing, there is less room for accountants to decide and act independently when faced with an ethical dilemma. For external whistleblowing, both personal factors and interactive results are not significant as accountants perceived it as a betrayal or rebellious act, and feared potential lawsuits. Overall, our results imply that the Japanese unique work culture mitigates the consistency between individual intentions and actual behavior.
{"title":"Whistleblowing intentions by public accountants in a non-Western society: The case of Japanese accountants","authors":"Shinji Horiguchi , Roszaini Haniffa , Mohammad Hudaib","doi":"10.1016/j.intaccaudtax.2024.100656","DOIUrl":"10.1016/j.intaccaudtax.2024.100656","url":null,"abstract":"<div><div>This study addresses a gap in the literature by exploring whistleblowing intentions in a society where social harmony, respectfulness, and conformity to rules and norms are perceived as important. A survey of Japanese public accountants indicates attitudes, independence commitment, perceived behavioral control, personal cost of reporting, and personal responsibility for reporting significantly influence internal whistleblowing intentions. Contrary to previous studies, we found personal cost of reporting has significant positive relationship with internal whistleblowing intention, which is a reflection of the unique Japanese work culture. Furthermore, perceived organizational support has a significant positive relationship with internal whistleblowing, signifying that Japanese public accountants feel comfortable to blow the whistle internally when there is high support from the organization. However, the interactive results reveal a significant negative relationship between perceived organizational support and internal whistleblowing, suggesting that despite organizational values that support internal whistleblowing, there is less room for accountants to decide and act independently when faced with an ethical dilemma. For external whistleblowing, both personal factors and interactive results are not significant as accountants perceived it as a betrayal or rebellious act, and feared potential lawsuits. Overall, our results imply that the Japanese unique work culture mitigates the consistency between individual intentions and actual behavior.</div></div>","PeriodicalId":53221,"journal":{"name":"Journal of International Accounting Auditing and Taxation","volume":"57 ","pages":"Article 100656"},"PeriodicalIF":3.3,"publicationDate":"2024-10-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142525977","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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