The effect of culture on conservatism of the firms

The culture of a society, unconsciously affects the planning and running method of the available information systems in various firms and institutions of that society. In other words, existing cultural diversity in societies can be known as a cause of the differences in institutional culture which itself is the main effective factor on the business performance of that institution (or firm). Some of the qualitative features of accounting information as conservatism is different in diverse countries and may root in the culture of every society.The purpose of this research is to answer the question that whether the culture can be effective on conservatism. Hafsted’s cultural dimensions in this research are considered as independent variables and conservatism as dependent variable. Statistical population of the present research is formed of 141 firms accepted in Tehran Stock Exchange. For computation of Hafsted’s cultural dimensions, vsm 44 questionnaire is used, that 341questionnaire from financial managers, senior accountants and accountants was received. Regarding the hypothesis’ test results, it is determined that all the hypotheses except the 3nd hypothesis were rejected and the cited hypothesis was accepted, in a way that there is a meaningful, positive relation between the avoidance of uncertainty and conservatism, and there is no relation between power distant, individualism, manly behavior, and long-term horizon and conservatism.

Keywords:

power distance , avoidance of uncertainty , individualism , manly behavior , long-term horizon , conservatism