The Research On Accounting Conservatism Of Domestic And Foreign-funded Enterprises Based On The Theory Of H-G Framework

Enterprise culture directly affects people’s values. Under the background ofdifferent enterprise culture, accountant can form different accounting values, leading todifferent accounting behavior. Accounting conservatism, on the one hand, is one of thetraditional accounting recognition and measurement principles. On the other hand, theprocess that performing in accordance with this principle is also a process ofimplementation of the accounting behavior, which will reflect the accountingprofessional judgment. Therefore, as one of the important factors that affect accountingconservatism, the enterprise culture should not be ignored. Accounting values andbehaviors are important factors of accounting subcultures. The H-G framework is oneof the most widely used and the most systematic theory in the field ofculture-accounting. According to the theory of H-G framework, this artical analyzesthe accounting conservatism of domestic and foreign-funded enterprises from the angleof enterprise culture in this paper. It not only further improves the effect of culture onaccounting in theory, but also explains the cause which leads to the differences ofcompanies’ accounting conservatism from a new angle. Moreover, the influence whichdifferent enterprise culture makes on accounting conservatism, to some extent, canreflect the degree of influence made by culture in the implementation of the accountingstandards. Hence, by studying the influence of enterprise culture on accountingconservatism, it is also of great significance to improve the formulation and effectiveimplementation of accounting standards.Based on the analysis of the H-G framework, this paper argues that the moreobvious the collectivism tendency shows, and the larger the power distance is, and thehigher the degree of uncertainty avoidance presents, and the smaller the men tendencyshows in enterprise culture, then the higher the accounting conservatism tends to be.However, Influenced by different national culture, including the influence of the ethnicgroups, religions, and ideas, enterprise culture of domestic and foreign companys willshow some difference. this paper uses the method of questionnaire investigation toverify the related analysis that there are differences between domestic enterprises andthe foreign-funded enterprises in cultural dimensions. The conclusion shows that theenterprise culture of domestic firms present the characteristics of collectivism tendency,large power distance, high uncertainty avoidance degree, and feminization tendency. While the enterprise culture of foreign capital firms get the characteristics ofindividualism tendency, small power distance, low uncertainty avoidance, andmasculine tendency. According to this conclusion, and on the impact of culture onaccounting conservatism, this paper argues that accounting conservatism of domesticenterprises is higher than that of the foreign capital enterprises. According to theresearch conclusion, this paper puts forward some policy suggestions that enterprisesshould improve its cultural construction, strengthen the quality of accountinginformation; and that our country should actively participate in the internationalizationprocess of accounting standards, and enhance the influence of Chinese culture in thisprocess; and that the international convergence of Chinese accounting standards shouldbe combined with Chinese traditional culture.