RIEB Seminar
| Date&Time | Monday, January 5, 2015, 2:00pm-3:30pm |
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| Place | Meeting Room at RIEB (Annex, 2nd Floor) |
| Language | Japanese |
2:00pm-3:30pm
| Speaker | Keishi FUJIYAMA |
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| Affiliation | Graduate School of Commerce and Management, Hitotsubashi University |
| Topic | The Influences of Culture on Goodwill Impairment Loss Decisions: Evidence from EU Firms |
| Abstract | Prior literature on international accounting shows that national culture affects accounting standards and practices in a country. This study explores the influences of national culture on the degree to which managers exercise their discretion, focusing on accounting for goodwill impairment under International Financial Reporting Standards. Consistent with our argument that the goodwill impairment loss decision is affected by national cultural dimensions determining decision-making processes in organizations as well as national institutions, the results show that the decision is associated with Hofstede's power distance and uncertainty avoidance cultural dimensions. This finding is robust when we use alternative cultural measures. This study extends prior literature by investigating accounting practices under a single set of accounting standards and by internationally comparing accounting practices for goodwill impairment. It also provides suggestions to practitioners and policymakers by documenting that stable factors influence goodwill impairment loss decisions. |