Estrategias de comercialización

The cultural factors focus on the theoretical dimensions of accounting practices based on the theoretical framework discussed in Chapter 3. Eight factors emerged from the exploratory factor analysis in uncovering the relationship between the items measuring the preference for accounting standards (see Table 5.6). In order to perform the factor analysis based on the EFA, the survey questionnaires met the sample size requirements for social science research consistent with Hair et al. (2006).

The majority of the items in the exploratory factor analysis were more than the 0.3 cutoff point

and Bartlett’sTest of Sphericity was highly significant (𝑋2 904.779, df 210, P≤0.001), which confirms the significant correlations across similar statements measuring the accounting values statements. This is applied to explore the impact of companies culture on IFRS adoption.

Further, the measure of sampling adequacy (MSA) value of 0.790 is an acceptable benchmark for factor analysis. Therefore, the data set was appropriate to conduct factor analysis. The selected value converged when a number of factors were established after several iterations.

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Table 5.6 Rotated Component Matrix of the Companies’ Accounting Practice

Statements Varimax rotated loading Communalitie

s

F1 F2 F3 F4 F5 F6 F7 F8

Factor 1: Flexibility

Accounting standards should be prescribed but adoption should be voluntary 0.707 0.547 Accounting practice should be self-regulated 0.740 0.656

Factor 2: Optimism

Adoption of accounting standards is very important for my company’s future business opportunities 0.865 0.482

Prescription of accounting standards provides non-financial benefits to companies and ensures future business success 0.945 0.587

Factor 3: Transparency

Prescription of accounting standards provides reliability on financial statements in Nigeria 0.524 0.894 Financial statements should be published for public use rather than be restricted to shareholders 0.459 0.517

Factor 4: Statutory control

The depreciation rule should be set externally and specifically in financial reporting for separate groups of financial assets and liabilities

0.656 0.630

Preparing financial statements that deviate from prescribed accounting standards should result in sanctions by government regulatory agencies

0.694 0.649

Factor 5: Professionalism 0.461

My company accountants are in the best position to judge what to report in financial statements without accounting standards 0.686 0.524 Professional accountants of companies are the best judges of what to include in financial statements 0.571 0.590

Factor 6: Uniformity

The level of detailed standardisation of financial statements should be increased 0.675 0.610 Once accounting policies and measurement are chosen they should not be changed 0.488 0.659 Financial statements should be standardised 0.669 0.583

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Table 5.6 Rotated Component Matrix of the Companies’ Accounting Practice (Continued)

Statements Varimax rotated loading Communalities

F1 F2 F3 F4 F5 F6 F7 F8

Factor 7: Secrecy

Management of financial performance forecasting should be included in the company’s financial statements 0.791 0.403 The amount of information in financial statements should be minimised 0.682 0.429 Information about shareholders and management of listed and non-listed companies should be reported in financial statements 0.846 0.472

Factor 8: Conservatism

Listed and non-listed companies should use market value instead of historical cost 0.481 0.569 In rising price periods, LIFO should be used instead of FIFO in measurement and estimation of accounting value 0.441 0.405 If in doubt of accounting policies and procedure, profit and assets should be measured downwards -0.499 0.525 Market values are generally less relevant than historical costs 0.538 0.354 Eigenvalues 2.421 1.585 1.489 1.289 1.246 1.212 1.104 1.075 Variance explained (%) 25.53 0 17.54 8 10.09 3 6.137 5.935 5.77 5.255 5.120 Cumulative variance (%) 25.53 0 43.07 8 53.17 1 59.30 8 65.24 3 71.01 3 76.26 8 81.38 8 Cronbach’s Alpha 0.817 0.684 0.894 5.133 0.749 0.813 0.61 0.597 KMO = 0.790

Bartlett's Test of Sphericity 𝑋2 _{= 904.779, df = 210, P≤ 0.001}

Note: Extraction method: principal component analysis with an orthogonal rotation (VARIMAX).

Excluded “Prescription of accounting standards provides financial benefits to companies” due to the low score below 0.3. Excluded “High ethical conduct should be a prerequisite for professional accountants” due to a negative correlation of -0.560.

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The eight-factors solution (see Table 5.6) was extracted from 21 items with the eigenvalues

(the Kaiser’s criterion) ranging from 2.00 to 1.00. The variance explained by the eight factors

was 81.4 percent of the total variance, which is considered satisfactory in social sciences research (Hair et al., 2006).

Further, the factor matrix was rotated using orthogonal (VARIMAX) and oblique (OBLIMIN)

rotations to obtain estimates of the components’ structure. In the data matrix, orthogonal

and oblique rotations produced similar results when the same items were loaded with the same factors in both rotation solutions. Therefore, the results are based on the orthogonal rotation outcome due to the simplicity in interpretation. Table 5.6 shows the items included in the factor analysis with the related factor loading results and commonalities.

The first factor labelled “flexibility” explained 25.53 percent of the variation. Flexibility consists of “accounting standards should be prescribed but adoption should be voluntary” and “accounting practice should be self-regulated”. The second factor labelled “optimism” explained 17.55 percent of the variance and consists of the following items: “adoption of

accounting standards is very important for my company’s future business opportunities” and “prescription of accounting standards provides non-financial benefits to companies but

ensures future business success”. The third factor labelled “transparency” explained 10.1 percent of the variance and consists of “prescription of accounting standards provides

reliability on financial statements in Nigeria” and financial statements should be published for public use rather than be restricted to shareholders. The fourth factor labelled “statutory control” explained 6.14 percent of the variance and converged with the statement

“depreciation rule should be set externally and specifically in financial reporting for separate groups of financial assets and liabilities” and “preparing financial statements that deviate

from prescribed accounting standards should result in sanctions by government regulatory

agencies”.

Further, the factor labelled “professionalism” explained 5.96 percent of the total variance (81.39%). This consists of three items including “the regulatory, technical judgment aspect of professionalism, and the ethical aspect” of accounting practice (Chanchani & Willett, 2004, p. 18). The professionalism dimension is somewhat different from that of Chanchani & Willett

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(2004, p. 18) due to the negative convergence of “ethical conduct should be a prerequisite for professional accountants” which was included in the case of New Zealand and India. The “uniformity” factorexplained 5.77 percent of the eight-factor solution variance. The sixth

factor includes the “measurement aspect of uniformity” and the “disclosure aspect of uniformity”. In addition, Factor 7 labelled “secrecy” explained 5.26 percent of the variance, which consists of items examining the secrecy dimension of accounting values which is consistent with Chanchani & Willett (2004). The secrecy dimension of accounting practice includes the “absence of transparency” and the “level of detail aspect of secrecy”. Lastly,

factor 8 labelled “conservatism” consists of four items identifying conservative accounting

practice among the respondents and it explained 5.12 percent of the variance explained by the eight-factor solution. The conservatism dimension includes conservatism in terms of measurement and disclosure of financial transactions.

The convergence of some of the constructs measuring the cultural factors and the companies’

accounting practices from the factor analysis reveals a new dimension that could possibly explain the companies’ response to IFRS in relation to differences in companies’ culture. Further, the key findings from the EFA include the correlation of the constructs measuring the cultural factors which are different from the findings reported in Chanchani and Willett (2004). For example, a high ethical prerequisite for professional accountants (-0.560) is negative. This means a high ethical prerequisite is less representative of professionalism, while other items are positively correlated. The correlated factors are used in the empirical analysis to examine the impacts of companies’ cultural factors on IFRS adoption.