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How does a study of popular culture help researchers understand how financial reporting information is valued by society - Essay Example

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Over time, it has been associated with the commercial culture and all its trappings like movies, television, radio, internet and all other commodities that are available for purchase…
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How does a study of popular culture help researchers understand how financial reporting information is valued by society
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How does a study of popular culture help researchers understand how financial reporting information is valued by society

Financial reports are then prepared to mirror the popular culture that prevails in monetary terms. Thus, ideally these reports should replicate the popular culture and should tell if that suits the well being of a country or not.
Critical theory encompasses the idea of popular culture. It involves the examination and analysis of a society and its culture. Recently, Geert Hofstede’s cultural dimensions have been used to describe national or, better put, popular cultures. Hofstede’s ideas are based on a large scale research project to bridge cultural differences globally and to come up with a global popular culture! It uses data obtained from sixty-four countries. These studies identify five dimensions. These dimensions can be used to analyze how similar or different countries are. Based on these, their financial reports should mirror the popular trends that prevail and should compare the financial status of the countries in a considerable time period. The first dimension is of power distance, second one being individualism, third masculinity, fourth uncertainty avoidance and last one being long term orientation( Hofstede, Geert). Power distance index is used to measure the degree to which authority is distributed lopsidedly within an association or an institution (and even in families). It also implies that a society’s degree of disparity is authorized by the supporters as much as by the leaders. The analysis of power distance shows significant differences amongst countries, Germany has a power distance index of 35 while Arab countries have a power index of 80. The second dimension of assessing the popular culture according to Hofstede is individualism. In this, it is compared whether the citizens prefer to look after themselves only, i.e. if they prefer individualism or if they prefer collectivism and like to help others. On the individualistic side, we find societies in which the ties between individuals are loose. Everyone takes care of himself ... Read More
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