Does culture moderate the relationship between AAOIFI adoption and earnings management? Evidence from Islamic banks
Research output: Chapter in Book/Report/Conference proceeding › Chapter (peer-reviewed) › peer-review
We examine whether culture moderates the relation between AAOIFI adoption and earnings management (EM). Using Gray and Hofstede culture framework a sample of 122 Islamic banks (IBs) across 24 countries for 2010 and 2017, we find a negative association between AAOIFI adoption and EM. Our analysis shows that cultural values of individualism; masculinity and UA positively strength the AAOIFI- EM assocaition. We also find that AAOIFI adoption results in a decrease in EM in high conservatism culture. Our findings offer a number of policy managerial and regulatory implications.
|Title of host publication||Monetary Policy, Islamic Finance, and Islamic Corporate Governance: An International Overview|
|Editors||Toseef Azid, Murniati Mukhlisin, Nashr Akbar, Muhammad Tahir|
|Publisher||Emerald Group Publishing Limited|
|Publication status||Accepted for publication - 26 Jul 2020|