Exploring the Impact of Organizational Culture on Accounting Practices and Financial Integrity

• Post by: airjournals
• July 27, 2024
• Comments off

Prof. Egiyi, Modesta Amaka^a, & Ugwu, Priscilla Ngozi^b, & Agu, Wilfred Nnabuike^c
aDepartment of Accounting, Godfrey Okoye University, Enugu
^bEnugu State Polytechnic, Iwollo, Ezeagu
^cGodfrey Okoye University, Enugu

AbstractThis study investigates the impact of cultural dimensions on accounting practices and financial integrity, with a focus on the mediating role of intermediary mechanisms such as technological adoption (TechAdopt), regulatory environment (RegEnv), and control systems (ControlSys). Utilizing a quantitative research design, the study employed surveys and questionnaires distributed to CEOs, CFOs, managers, and accounting staff across financial enterprises in the Tech and Manufacturing industries in Nigeria. A stratified random sampling method ensured a representative sample of 100 respondents per industry. The findings reveal that cultural dimensions—namely Involvement, Consistency, Mission, and Adaptability—significantly influence accounting outcomes through the identified mediators. Mediation and moderation analyses demonstrated that the relationship between cultural dimensions and accounting practices varies depending on the strength of intermediary mechanisms. Structural Equation Modelling (SEM) confirmed the pathways through which cultural dimensions impact financial integrity, highlighting the importance of integrating cultural strategies with robust systems and regulatory compliance. The study underscores the need for organizations to enhance their intermediary mechanisms to fully leverage the benefits of their cultural dimensions, thereby improving accounting practices and overall firm performance. This research contributes to a deeper understanding of how organizational culture influences accounting outcomes and provides practical insights for enhancing financial integrity through effective cultural and systemic strategies. Keywords Organizational Culture; Accounting Practices; Financial Integrity; Technological Adoption; Regulatory Environment; Control Systems; Structural Equation Modelling Citation Egiyi, M. A., Ugwu, P. N. & Agu, W. N. (2024). Exploring the Impact of Organizational Culture on Accounting Practices and Financial Integrity. International Journal of Advanced Finance and Accounting, 5(2), 1-16 https://doi.org/10.5281/zenodo.13081799