The National Cultural Foundations of Financial Statements Integrity: A Systematic Literature Review Through the Lens of Hofstede’s Cultural Dimensions

Bobby Pratama; Yusnaini; Shelly Febriana Kartasari

doi:10.63922/ijevss.v5i04.6508

Bobby Pratama Master of Accounting Science Program, Sriwijaya University, Indonesia
Yusnaini Department Of Accounting, Sriwijaya University, Indonesia
Shelly Febriana Kartasari Department Of Accounting, Sriwijaya University, Indonesia

DOI: https://doi.org/10.63922/ijevss.v5i04.6508

Keywords: Financial Statements Integrity, National Culture, Hofstede’s Cultural Dimensions, Gray’s Accounting Values Theory, Financial Reporting.

Abstract

This study examines the influence of national culture on financial statements integrity through the perspective of Hofstede’s Cultural Dimensions Theory and Gray’s Accounting Values Theory using a Systematic Literature Review (SLR) approach. A total of 50 peer-reviewed articles published between 2021 and 2026 were analyzed based on PRISMA guidelines. The review focuses on cultural dimensions, accounting values, transparency, conservatism, professional judgment, and financial reporting practices across different countries. The findings indicate that national culture influences managerial behavior, disclosure practices, accounting decisions, ethical considerations, and financial reporting integrity. Hofstede’s cultural dimensions explain how societal values affect organizational attitudes toward accountability, uncertainty, and transparency, while Gray’s Accounting Values Theory demonstrates how cultural characteristics shape accounting practices through professionalism, uniformity, conservatism, and secrecy. This study highlights that financial statements integrity is influenced not only by accounting standards and regulatory frameworks but also by cultural factors embedded within organizations and societies. The study contributes to international accounting literature by providing a broader understanding of the role of cultural values in shaping financial reporting practices and strengthening financial statements integrity.

References

Abed, I. A., Hussin, N., Haddad, H., Almubaydeen, T. H., & Ali, M. A. (2022). Creative accounting determination and financial reporting quality: The integration of transparency and disclosure. Journal of Open Innovation: Technology, Market, and Complexity, 8(1), 38. https://doi.org/10.3390/ joitmc8010038
Agoraki, K. K., Deirmentzoglou, G. A., & Triantopoulos, C. (2024). Cultural values as catalysts of technological innovation for a sustainable future. Sustainability, 16, 2064. https://doi.org/ 10.3390/su16052064
Al Ani, M. K. (2021). Corporate social responsibility disclosure and financial reporting quality: Evidence from Gulf Cooperation Council countries. Borsa Istanbul Review, 21, S25–S37. https://doi.org/10.1016/j.bir.2021.01.006
Aljughaiman, A. A., Cao, N. D., Albarrak, M. S., & Almulhim, A. A. (2024). Influence of cultural and environmental values of CEOs on greenhouse gas emission intensity. Sustainability, 16, 913. https://doi.org/10.3390/su160209 13
Bao, M. X., Cheng, X., Smith, D., & Tanyi, P. (2021). CEO pay ratios and financial reporting quality. Global Finance Journal, 47, 100506. https://doi.org/10. 1016/j.gfj.2019.100506
Bhatti, M. A., Mat Saat, S. A., Aleidan, M. M., Al Murshidi, G. H. M., Alyahya, M., & Juhari, A. S. (2022). Are business graduates' employability skills and learning/teaching techniques universal? Exploring the role of culture: A comparative study among Australia, China, Pakistan, and Saudi Arabia. Sustainability, 14, 3069. https://doi.org/10.3390/su14053069
Bilal, Tan, D., Komal, B., Ezeani, E., Usman, M., & Salem, R. (2022). Carbon emission disclosures and financial reporting quality: Does ownership structure and economic development matter? Environmental Science & Policy, 137, 109–119. https://doi.org/10.1016/j.en vsci.2022.08.004
Cahyadi, A., Marwa, T., Wahyudi, T., Muizzuddin, Sulastri, Maulana, A., & Szabó, K. (2024). Exploring the mediating role of innovation in the nexus between national culture and sustainable competitiveness. Administrative Sciences, 14, 310. https://doi.org/10.33 90/admsci14120310
Cahyadi, A., Raneo, A. P., Marwa, T., Adam, M., & Szabó, K. (2024). Emerging economies: An investigation of national culture and sustainable development. Economies, 12, 226. https://doi.org/10.3390/economies12090226
Chang, L.-H., & Wu, S. (2023). The correlation between Hofstede's cultural dimensions and COVID-19 data in the early stage of the COVID-19 pandemic period. Healthcare, 11, 2258. https://doi.org/10.3390/healthcare11162258
Chiu, T.-T., Lim, J.-H., Traini, S., & Yen, J.-C. (2026). Blockchain, financial reporting quality, and investment efficiency. Journal of Accounting and Public Policy, 57, 107422. https://doi.org/10.1016/j.jaccpubpol.2026.107422
Colleoni, E., Romenti, S., Valentini, C., Badham, M., Choi, S. I., Kim, S., & Jin, Y. (2022). Does culture matter? Measuring cross-country perceptions of CSR communication campaigns about COVID-19. Sustainability, 14, 889. https://doi.org/10.3390/su14020889
Dambra, M., Khavis, J. A., & Lin, Z. (2026). Accounting-employee flows and financial reporting quality. Journal of Accounting and Public Policy, 58, 107454. https://doi.org/10.10 16/j.jaccpubpol.2026.107454
Dobija, D., Hryckiewicz, A., Zaman, M., & Puławska, K. (2022). Critical mass and voice: Board gender diversity and financial reporting quality. European Management Journal, 40, 29–44. https://doi.org/10.1016/j.emj.2021.02.005
Dodd, O., & Zheng, B. (2022). Does board cultural diversity contributed by foreign directors improve firm performance? Evidence from Australia. Journal of Risk and Financial Management, 15, 332. https://doi.org/10.3390/jrfm15080332
Escandon-Barbosa, D., Salas-Paramo, J., & Rialp-Criado, J. (2021). Hofstede's cultural dimensions as a moderator of the relationship between ambidextrous learning and corporate sustainability in born global firms. Sustainability, 13, 7344. https://doi.org/10.33 90/su13137344
Felix, R., Mansi, S., & Pevzner, M. (2024). Audit committee–CFO political dissimilarity and financial reporting quality. Journal of Accounting and Public Policy, 45, 107209. https://doi.org/10.1016/j.jaccpubpol.2024.107209
Ghazali, I., Abdul-Rashid, S. H., Md Dawal, S. Z., Huda, N., Mohd Shariff, A. H., Herawan, S. G., Ho, F. H., & Sakundarini, N. (2021). Guidelines for designing green products considering customers' cultural preferences. Sustainability, 13, 673. https://doi.org/10.3390/su1302 0673
Gînguță, A., Blehuiu, A. E., Ștefea, P., & Munteanu, V. P. (2026). Beyond algorithms: A cross-national study assessing cultural dimensions and artificial intelligence capability. Systems, 14, 729. https://doi.org/10.3390/systems140 70729
Hsu, Y.-L., & Yang, Y.-C. (2022). Corporate governance and financial reporting quality during the COVID-19 pandemic. Finance Research Letters, 47, 102778. https://doi.org/10.1016/j.frl.20 22.102778
Huang, T.-Y., Jordan, E. J., Boley, B. B., Woosnam, K. M., Xiao, X., Maruyama, N., & Rojas, C. (2024). Rebuilding international tourism after a pandemic: Using Hofstede's cultural dimensions to identify markets with lower pandemic-related travel risks. Journal of Destination Marketing & Management, 31, 100855. https://doi.org/10.1016/j.jdmm.20 24.100855
Hung, C.-L. (2024). Cultural dimensions and consumption values of cross-border electronic commerce: A canonical analysis. Businesses, 4, 823–842. https://doi.org/10.3390/busine sses4040045
Izadi, S., Weinberg, F. J., & Rashid, M. (2025). National culture, institutional quality, and financial development: International evidence before and after financial crisis. International Journal of Financial Studies, 13(2), 74. https://doi.org/10.3390/ijfs13020074
Jadiyappa, N., Hickman, L. E., Shrivastav, S. K., Rajpal, H., & Kaur, N. (2024). Bank-affiliated directors' monitoring, earnings management, and financial reporting quality in emerging markets: Evidence from India. Emerging Markets Review, 62, 101184. https://doi.org/10.1016/j.ememar.2024.101184
Jang, H., Kim, D., Kim, H., & Jang, L.-C. (2025). Applications of Hofstede's cultural dimensions in 50 countries using TFN-generalized Choquet integrals. Applied Soft Computing, 172, 112875. https://doi.org/10.1016/j.asoc.2025 .112875
Khalil, U. F. (2022). Auditor choice and its impact on financial reporting quality: A case of banking industry of Pakistan. Asia Pacific Management Review, 27, 292–302. https://doi.org/10.1016/j.apmrv.2021.12.001
Leonavičienė, E., & Burinskienė, A. (2022). Accelerating cultural dimensions at international companies in the evidence of internationalisation. Sustainability, 14, 1524. https://doi.org/ 10.3390/su14031524
Li, J. (2026). Artificial intelligence innovation and financial report quality. International Review of Economics & Finance, 105, 104832. https://doi.org/ 10.1016/j.iref.2025.104832
Li, X., & Liu, M. (2024). Abnormal audit fees and financial reporting quality: A meta-analysis. Journal of International Accounting, Auditing and Taxation, 55, 100622. https://doi.org/10.1016/j.intaccaudtax.2024.100622
Liao, K., Lin, L., & Sun, Y. (2025). Blockchain adoption and corporate financial reporting quality. Journal of Accounting and Public Policy, 49, 107265. https://doi.org/10.1016/j.jaccpub pol.2024.107265
Liaqat, I., Gao, Y., Rehman, F. U., Lakner, Z., & Oláh, J. (2022). National culture and financial inclusion: Evidence from Belt and Road economies. Sustainability, 14, 3405. https://doi.org/10.3390/su14063405
Lin, H.-L., & Yen, A.-R. (2022). Auditor rotation, key audit matter disclosures, and financial reporting quality. Advances in Accounting, 57, 100594. https://doi.org/10.1016/j.adiac.20 22.100594
Mi, B., Zhang, L., Han, L., & Shen, Y. (2024). Bank market power and financial reporting quality. Journal of Corporate Finance, 84, 102530. https://doi.org/ 10.1016/j.jcorpfin.2023.102530
Novotny, A., Szeberin, I., Kovács, S., & Máté, D. (2022). National culture and the market development of battery electric vehicles in 21 countries. Energies, 15, 1539. https://doi.org/10.3390/en15041539
Özer, G., Aktaş, N., & Çam, İ. (2024). Corporate environmental, social, and governance activities and financial reporting quality: An international investigation. Borsa Istanbul Review, 24, 549–560. https://doi.org/10.101 6/j.bir.2024.03.001
Pacheco-Paredes, A., Turner, E., & Wheatley, C. (2025). Reducing risk by understanding the interplay of critical audit matters and culture. Journal of Risk and Financial Management, 18(3), 117. https://doi.org/10.3390/jrfm18030117
Poulova, P., Wang, H., Lin, S., Wu, X., Tehseen, S., & Liu, X. (2024). Impact of Hofstede's cultural dimensions on sustainable competitive advantage: The mediating role of entrepreneurial innovativeness among Malaysian ethnic entrepreneurs. Acta Psychologica, 251, 104538. https://doi.org/10.1016/j. actpsy.2024.104538
Riaz, W., Gul, S., & Lee, Y. (2023). The influence of individual cultural value differences on pro-environmental behavior among international students at Korean universities. Sustainability, 15, 4490. https://doi.org/10.3390/su150 54490
Roša, A., & Lace, N. (2026). Disclosure of employment quality in non-financial corporate reporting. Journal of Open Innovation: Technology, Market, and Complexity, 12, 100843. https://doi.org/10.1016/j.joitmc.2026.100843
Singh, H., Sultana, N., Islam, A., & Singh, A. (2022). Busy auditors, financial reporting timeliness and quality. The British Accounting Review, 54, 101080. https://doi.org/10.1016/j.bar.20 22.101080
Subhani, B. H., Farooq, U., Bhatti, M. I., & Khan, M. A. (2021). Economic policy uncertainty, national culture, and corporate debt financing. Sustainability, 13, 11179. https://doi.org/10.3390/su132011179
Tehrani, M., Rathgeber, A., Fulton, L., & Schmutz, B. (2021). Sustainability & CSR: The relationship with Hofstede cultural dimensions. Sustainability, 13, 12052. https://doi.org/ 10.3390/su132112052
Tlili, A., Denden, M., Affouneh, S., Salha, S. H., Cai, Z., Jemni, M., Bozkurt, A., Huang, R., & Zhu, L. (2021). Understanding Arab students' behavioral patterns in an online course: An explanatory study based on Hofstede's national cultural dimensions. Sustainability, 13, 12426. https://doi.org/10.33 90/su132212426
Trireksani, T., Djajadikerta, H. G., Kamran, M., & Butt, P. (2024). The impact of country characteristics on board gender diversity and sustainability performance: A global perspective. Sustainability, 16, 3057. https://doi.org/ 10.3390/su16073057
Valverde-Moreno, M., Torres-Jiménez, M., Lucia-Casademunt, A. M., & Pacheco-Martínez, A. M. (2021). Do national values of culture and sustainability influence direct employee PDM levels and scope? The search for a European answer. Sustainability, 13, 8016. https://doi.org/10.3390/su13148016
Wang, H., Tang, Q., & Guo, T. (2023). Board gender diversity and carbon proactivity: The influence of cultural factors. Journal of Risk and Financial Management, 16, 131. https://doi.org/10.3390/jrfm16020131
Westfall, T. J., & Myring, M. (2022). Are voluntary internal control weakness disclosures in initial public offerings associated with managerial ability and subsequent financial reporting quality? Advances in Accounting, 59, 100617. https://doi.org/10.1016/j.adiac.2022.100617
Zainal, S. F., Hashim, H. A., Mohamad, N. R., Salleh, Z., & Ariff, A. M. (2024). A survey dataset of ethical culture and financial reporting quality in Malaysian small and medium enterprises. Data in Brief, 57, 110868. https://doi.org/10.10 16/j.dib.2024.110868
Zeng, Y., Liu, M., Ding, A., Xu, R., & Zhang, H. (2023). Cultural similarity of non-local independent directors and financial reporting quality. International Review of Financial Analysis, 90, 102918. https://doi.org/10.1016/j.irfa.2023 .102918
Zheng, F., Zhao, C., Yasmin, F., & Sokolova, M. (2025). Hofstede's cultural dimensions and proactive behavior as the antecedents of entrepreneurial innovativeness. Acta Psychologica, 256, 104948. https://doi.org/10.1016/j.actpsy.2025.104948