Integrated Reporting Quality with Hofstede^s Six Dimensions of National Culture: Case Studies from Indonesia
Asri Pangestika Lutfiani*, Yohani, Sobrotul Imtikhanah

Accounting, Economics and Business, University of Muhammadiyah Pekajangan Pekalongan, Pekalongan, Indonesia

Abstract

In recent years, IR reporting has received increasing attention, both academic and professional. However, report quality is still an important aspect in IR. Although several studies have investigated IR, only a few have focused on quality and its determinants. This paper aims to investigate the impact of national culture, which is an external-determinants, from stakeholder theory perspective on the quality of integrated reporting (IR). The data cover the period 2022 of listed companies in Asia. Hypothesis testing uses a regression model with SEM-PLS. Because there is no variability in the independent variables over time, cross-section analysis is used rather than panel analysis. The results show that IR quality is related to Hofstede^s five dimensions, namely power distance, individualis, masculinity and indulgence negatively, while uncertainty avoidance are positively. Although, long-term orientation does not have a significant influence on IR quality. This research complements the literature on company report quality factors. These findings are also important for managers and policy makers. Several categories of national culture can be considered to improve the quality of IR so that global sustainable development and world capital markets will be better.

Keywords: IR Quality- National Culture- Hofstede- Indonesia

Topic: Economics