The Impact of Culture and Social Norms on Earnings Management: A Case Study of Iraq

Abstract

The management of earnings has emerged as a critical determinant of organisational success, necessitating the consideration of culture and social norms. This aspect warrants the attention of both researchers and regulators. This article aims to investigate the influence of culture and social norms on the practise of earning management within the manufacturing sector in Iraq. This study examines the moderating influence of institutional support on the relationship between culture, social norms, and earning management within the manufacturing sector in Iraq. Data was collected from employees in the manufacturing industry through the administration of questionnaires. The article also utilised the SPSS-AMOS software to examine the relationship between the variables under study. The findings suggest that there is a positive correlation between culture, social norms, and earning management within the manufacturing sector in Iraq. The results also revealed that institutional support plays a significant moderating role in the relationship between culture, social norms, and earnings management in the manufacturing industry in Iraq. The study provides guidance to policymakers in formulating policies aimed at improving earnings management through the utilisation of effective cultural and social norms