Cultural Influences on the Quality of Anti-Corruption Disclosure in the Banking Sector
DOI:
https://doi.org/10.33094/ijaefa.v22i2.2299Keywords:
Anti-corruption disclosure, Culture, Indulgence, Long-term orientation, Power distance.Abstract
This paper aims to investigate the impact of cultural values on Anti-corruption disclosure (ACD) quality in the MENA region. ACD is an essential tool to fight against corruption. It is considered a major part of corporate social responsibility (CSR) reporting due to its inconsistency with sustainable development because of its severe social, economic, and environmental impacts. 354 observations from 55 MENA region banks are studied from 2013 to 2019. The countries that are studied include Lebanon, Egypt, Jordan, and Saudi Arabia. This study is among the first to study the impact of all of Hofstede's six cultural dimensions on ACD which enhances the knowledge in this area and fills the literature gap. A content analysis is accomplished for the bank’s annual reports, CSR reports, and sustainability reports. Two measures are used for ACD: First, disclosure extent and extensiveness are measured using the number of words. Second: Disclosure breadth is measured through Transparency International-UNGC Reporting Guidance ratings of ACD. Several statistical methods were used: descriptive statistics, linear regression, and Pearson correlation. The findings show a significant negative association with power distance and a significant positive association with indulgence which supports the institutional theory and contributes to the literature by providing more insights to policy-makers and standards-setters to take cultural dimensions into consideration in the formation and enforcement of anti-corruption laws.
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