STUDYING FINANCIAL REPORTING PRACTICE WITHIN CULTURAL PERSPECTIVE: A NOTE FOR DOING RESEARCH IN THE INDONESIAN ENVIRONMENT

Abstract

Studies of financial reporting have proceeded in several directions and have raised concerns about the roles of corporate governance mechanisms, auditors and regulators In monitoring managers' behaviour. Most of these studies have been dominated by the positive accounting research paradigm framework However, empirical studies have not provided conclusive and convincing evidence to support the claims made for the usefulness of financial reporting. Such studies produced different results, but they did not provide conclusive and convincing explanations for such different findings. This paper argues that accounting practice is influ¬enced not only by economic variables as claimed by the proponents of positive research, but also by institutional, political and cultural environments, Consequently, this study suggests some notes to study financial reporting practice within cultural perspective especially in the Indonesian environment. Keywords: financial reporting, Javanese culture, institutions, qualitative research