Browsing by Author "Nanayakkara, D. R. N. A. M."

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    Impact of Cultural Dimensions on Accounting Practices in Sri Lanka: Study of Accounting Professionals’ Perspective
    (Department of Accountancy, University of Kelaniya, Sri Lanka., 2022) Nanayakkara, D. R. N. A. M.; De Silva, P. O.
    The accounting harmonization process entails increasing the compatibility of accounting practices while minimizing variance. This process of ordering various accounting practices is vulnerable to a variety of powers, including political, cultural, and legal. Sri Lanka, as a multifaceted and multicultural country, is particularly affected by this issue. However, there is a paucity of research on the cultural trajectories that influence accounting practices in the Sri Lankan context. As a result, the research looks into the impact of the cultural variables on accounting practices in Sri Lanka. The study takes a quantitative approach by distributing 150 questionnaires to accounting professionals using a convenience sampling method. The study articulates Hofstede's cultural dimensions such as power distance, individualism vs. collectivism, uncertainty avoidance, masculinity vs. femininity, long term vs. short term, indulgence vs. restraints, and secrecy vs. transparency in accounting practices, as well as Gray's accounting practices such as professionalism vs. statutory control, uniformity vs. flexibility, conservatism vs. optimism, and secrecy. The study then employs Exploratory Factor Analysis (EFA), Principal Component Analysis (PCA), and Varimax extraction to determine the influence of cultural variables on accounting practices. The extracted factors are accommodated in the multiple regression model to ascertain the impact of cultural dimensions and accounting practices. The current findings emphasize that power distance and individualism are the most dominant cultural dimensions in the given context, resulting in uniform and secretive accounting practices. As a result, the study develops a model tailored to the Sri Lankan context which incorporates the dimensions of Hofstede and Gray. The study demonstrates that a thorough understanding of cultural influences is critical to the success of the process of accounting standard adoption.