The purpose of this paper is to investigate the effects of cultural values on accounting uniformity and consistency among Arabic nations.
A combination of a survey and analysis of published data on accounting information. Cluster analysis is used to classify the countries on the basis of accounting consistency and uniformity.
The study indicates that the Hofstede‐Gray hypothesis of accounting uniformity in Arab countries is supported by actual examination of accounting practice.
This is an initial study and the results need to be confirmed in future research. Nevertheless, the finding should be of interested to global investors, international accounting organizations (e.g. IFAC) and other academics who are researching accounting in the Middle East.
The study indicates that in Arabic nations with a Muslim majority, cultural factors affect accounting development generally and accounting uniformity particularly. The study also shows that accounting practice in Saudi Arabia is less strict in term of uniformity in comparison with other Arabic countries.
The paper is one of the few attempting to assess the effects of culture on accounting uniformity in the Middle East.
