Exploring Ramifications of Power Distance for Corporate Governance Using Multiple Methodologies and Focusing on Mediating Effects

• In Event: Culture and Accounting

Abstract

Different research methodologies with different strengths and weaknesses were utilized to provide complimentary perspectives on relationships between power distance and corporate governance. A qualitative approach focused on one nation (China) provided insight into why power distance should be expected to negatively influence corporate governance related to reporting activities. An archival approach demonstrated that, across nations, there is a negative relationship between power distance and corporate governance that is mediated by national governance. At the nation level, power distance influences corporate governance indirectly through first influencing national governance, which further influences corporate governance. For the third methodological approach, data was collected from working accounting professionals with management responsibilities and a more particular aspect of corporate governance was considered. At the level of the individual, power distance influences unethical accounting leadership intentions both directly and indirectly. The indirect effect occurs through the partial mediation of unethical subjective norms. Power distance is a cultural construct that refers to the level of inequality that is accepted in hierarchical relationships. The findings of this study suggest corporate governance, which in many respects involves hierarchical relationships, is influenced by power distance.

Author

• Joshua Cieslewicz, Utah Valley University