Consequences of local social norms: A review of the literature in accounting, finance, and corporate governance
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Date
2023-03-13
Open Access Location
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
John Wiley and Sons Australia, Ltd on behalf of Accounting and Finance Association of Australia and New Zealand
Rights
(c) 2022 The Author/s
CC BY-NC-ND 4.0
CC BY-NC-ND 4.0
Abstract
We synthesise the empirical archival research on the consequences of local social norms on accounting, finance, and corporate governance outcomes in an international setting. The literature reviewed is premised on the theory that corporations do not make decisions, but managers do, and managers are likely to be influenced by the socioeconomic environment of the region in which they operate and/or by the people with whom they interact. To provide a structure to our review, we identify social capital, religiosity, gambling norms, and corruption culture, as four constructs of local social norms and link these with financial reporting and external auditing, financial, investment, and dividend decisions, capital market consequences and finally, corporate governance and corporate social responsibility behaviour of firms. We highlight some limitations of the existing research and offer some suggestions for future research.
Description
Keywords
corruption, gambling, religiosity, social capital, social norms, social trust
Citation
Habib A, D' Costa M, Al-Hadi AK. (2023). Consequences of local social norms: A review of the literature in accounting, finance, and corporate governance. Accounting and Finance. 63. 1. (pp. 3-45).