THE INFLUENCE OF CULTURE ON MANAGEMENT AND ACCOUNTING PRACTICES IN THE UAE

Abstract

This paper examines the Hofstede-Gray model of the influence of culture on accounting practices in United Arab Emirates (UAE). Our study provides some evidences of how socio-cultural values are related to accounting values such as professionalism, financial reporting, uniformity, and accounting measurements in UAE. The contribution of this study is to measure accounting qualities in UAE by considering the influence of cultural values. This study used Hofstede-Gray model of culture and accounting to test present accounting practices in UAE. This theory predicts that accounting practices in UAE should have a propensity toward statutory controls in accounting authority, secrecy in regard to disclosing financial statements, and using uniform but conservative accounting methods in measuring financial statement elements. Our results totally reject Gray’s prediction of almost all accounting values in UAE except for uniformity.