How Culture and Legal Environment affect Classification Shifting? Global Evidence

Article


Boahen, E. and Mamatzakis, E. C. 2024. How Culture and Legal Environment affect Classification Shifting? Global Evidence. International Journal of Finance and Economics. In Press. https://doi.org/10.1002/ijfe.2933
AuthorsBoahen, E. and Mamatzakis, E. C.
Abstract

This study examines the interplay between various cultural characteristics and the legal environment on classification shifting using a global sample that enables variability in underlying cultural characteristics across countries while controlling for heterogeneity. Given that both culture and the legal environment tend to exhibit low variability over time, our international cross-country analysis with diverse cultural dimensions and legal frameworks enhances the robustness of our empirical findings. Our identification strategy employs several models and shows the significant impact of culture on classification shifting and the interactions between national culture and the legal environment on classification shifting behaviour, though there is variability across countries. We also find that certain traits of culture induce classification shifting. We highlight that strengthening the legal environment becomes crucial in creating an institutional framework that effectively curbs unethical practices induced by certain national culture traits and enhances transparency and accountability in financial reporting.

JournalInternational Journal of Finance and Economics
Journal citationIn Press
ISSN1076-9307
Year2024
PublisherWiley
Accepted author manuscript
License
File Access Level
Anyone
Digital Object Identifier (DOI)https://doi.org/10.1002/ijfe.2933
Publication dates
Online04 Feb 2024
Publication process dates
Accepted07 Jan 2024
Deposited06 Feb 2024
Copyright holder© 2024, Wiley
Copyright informationThis article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions. This article may not be enhanced, enriched or otherwise transformed into a derivative work, without express permission from Wiley or by statutory rights under applicable legislation. Copyright notices must not be removed, obscured or modified. The article must be linked to Wiley’s version of record on Wiley Online Library and any embedding, framing or otherwise making available the article or pages thereof by third parties from platforms, services and websites other than Wiley Online Library must be prohibited.
Additional information

This is the peer reviewed version of the following article: Boahen, E. O., & Mamatzakis, E. C. (2024). How culture and legal environment affect classification shifting? Global evidence. International Journal of Finance & Economics, IN PRESS, which has been published in final form at https://doi.org/10.1002/ijfe.2933

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