The Influence of Culture on Accounting Standards and Practices in Multinational Corporations Operating in Nigeria

Abstract

The convergence of global financial markets has intensified the imperative for harmonized accounting standards, with the International Financial Reporting Standards (IFRS) positioned as a cornerstone of financial transparency, comparability, and investor confidence. However, in emerging markets such as Nigeria, cultural dimensions significantly shape the adoption and practical implementation of IFRS, creating a tension between global norms and local institutional realities. This study empirically investigates the influence of key cultural variables power distance, collectivism, and uncertainty avoidance on IFRS compliance among multinational corporations (MNCs) operating in Nigeria. Employing a sequential mixed-methods design, data were gathered from 101 finance professionals via structured surveys and supplemented by in-depth interviews with senior executives. The findings reveal heterogeneous levels of compliance, influenced by internal governance, audit independence, and cultural dynamics. Firms with foreign-led management and consistent IFRS training programs exhibit superior adherence to reporting standards, while local managerial hierarchies and conservative disclosure practices present persistent barriers. These results underscore the complex interplay between global accounting frameworks and sociocultural embeddedness, suggesting that effective IFRS implementation in Nigeria necessitates regulatory reinforcement, organizational cultural re-engineering, and sustained capacity development. The study advances the discourse on international accounting harmonization by contextualizing financial reporting within culturally bounded governance environments.