The Role Of Cultural Identity In Accounting Information Interpretation: An Indian Perspective Across Borders
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Using the Indian expatriate community in the United Arab Emirates as the primary focal point, this paper examines how cultural identity influences the interpretation and trust in accounting and financial reporting information across borders. The study integrates behavioral accounting and cultural psychology perspectives, arguing that deeply embedded cultural values, societal norms, and collective memory shape how individuals process financial disclosures, assess reporting credibility, and rely on audit assurances. While globalization homogenizes financial practices, core cultural scripts continue to mold the interpretation of accounting information, underscoring the need for culturally sensitive financial reporting frameworks.
The research employs a mixed-methods approach, combining quantitative surveys with structured interviews. Data were collected from 63 Indian participants (residents and expatriates) to ensure demographic diversity. Advanced statistical techniques, including ANOVA and multiple regression, were used to analyze differences in accounting information interpretation. Findings reveal that cultural identity significantly affects trust in financial disclosures and reliance on institutional assurance mechanisms. Indian expatriates in the UAE demonstrate distinct interpretive patterns compared to their counterparts in India, influenced by cultural adaptation and financial socialization. These insights offer important implications for accounting standard-setters, auditors, and corporate disclosure strategists, highlighting the need for culturally tailored communication and assurance frameworks. Limitations include the cross-sectional design and reliance on self-reported data. Future research should adopt longitudinal approaches to track interpretive shifts over time.
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