SOCIAL CONSTRUCTION OF FINANCIAL REPORTING PRACTICE IN AN INDONESIAN INSURANCE COMPANY: JAVANESE CULTURE PERSPECTIVE

CHARIRI, Anis (2009) SOCIAL CONSTRUCTION OF FINANCIAL REPORTING PRACTICE IN AN INDONESIAN INSURANCE COMPANY: JAVANESE CULTURE PERSPECTIVE. In: Simposium Nasional Akuntansi 12 (SNA 12), 4 - 6 November 2009, Palembang.

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Abstract

This study is a case study conducted in an Indonesian insurance company. The aim of the study is to understand the dynamics of financial reporting in the company. Ontologically, this study is built on a belief that financial reporting practice is a socially constructed reality. As a socially constructed reality, such a practice involves an interaction among social actors, and between organisational actors and the institutional and cultural environment in which the company operates. The main research question of this study is how organisational culture influences the company on the construction of its financial reporting practice. This study reveals that the company is committed to quality financial reporting because such reporting can be used to gain legitimacy and to maintain social harmony. The company conducts itself in this way is because it reflects Javanese culture, a dominant culture in Indonesia. Furthermore, this study concludes that the way the actors in the company construct financial reporting practice is influenced by its organisational culture. The organisational culture of the company, which reflects Javanese culture, is able to shape the behaviour of its actors from the top level to lower levels to conduct ethical and transparent business practice. Thus, as Hines (1988) claims, this paper concludes that financial reporting practice is a socially constucted reality. Key words: organisational culture, Javanese culture, financial reporting, social construction

Item Type:Conference or Workshop Item (Paper)
Subjects:H Social Sciences > HG Finance
Divisions:Faculty of Economics and Business > Department of Accounting
ID Code:15149
Deposited By:Mr. Perpustakaan Fakultas Ekonomi
Deposited On:23 Jun 2010 09:44
Last Modified:23 Jun 2010 09:44

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