The influence of religiosity on financial reporting quality across countries : the moderating effect of legal origin

Adem, Abdellatif (author), Chakroun, Raida (author)

This study examines the connection between religiosity and earnings quality, employing accrual-based and real earnings management as key indicators. By analyzing data from 22 countries from 2020 to 2023, the study identifies a negative correlation between religiosity and earnings manipulation, suggesting that managers in more religious environments are less prone to such practices. The robustness of these results is validated through multiple methods and alternative religiosity metrics. Furthermore, the study highlights the role of legal systems in shaping this relationship, demonstrating that managers in religious nations governed by civil law are more likely to engage in earnings management. This study underscores the need for greater awareness of earnings management, particularly in religious nations with a civil-law legal origin. Additionally, it builds on Yamen et al. (2021) by recommending further investigation into cultural influences beyond Hofstede's framework.

• Language: English
• Keywords: management, cultural heritage, religion, legislation, earnings management, national culture, religiosity, legal origin
• Work type: Article
• Typology: 1.01 - Original Scientific Article
• Organization: EF - School of Economics and Business
• Publication status: Published
• Publication version: Version of Record
• Publication date: 01.06.2026
• Year: 2026
• Number of pages: Str. 89-107
• Numbering: Vol. 28, iss. 2, article no. 2
• PID: 20.500.12556/RUL-183252
• UDC: 005.3
• ISSN on article: 2335-4216
• DOI: 10.15458/2335-4216.1370
• COBISS.SI-ID: 280242691
• Publication date in RUL: 09.06.2026

Record is a part of a journal

• Title: Economic and business review
• Publisher: Ekonomska fakulteta
• ISSN: 2335-4216
• COBISS.SI-ID: 268649216

Licences

• License: CC BY 4.0, Creative Commons Attribution 4.0 International
• Link: http://creativecommons.org/licenses/by/4.0/
• Description: This is the standard Creative Commons license that gives others maximum freedom to do what they want with the work as long as they credit the author.

Secondary language

• Language: Slovenian
• Keywords: management, kulturna dediščina, religija, zakonodaja