The effect of cultural values on the policy of income smoothing Applied Research on Sample in Kurdistan region Industrial Companies

Abstract

The purpose of this study is to analyze the relationship and effects of six dimensions of cultural value on the income smoothing policy in the industrial sector in region of Kurdistan. This research will show how cultural and economic factors play complementary roles. This study relies on an empirical investigation over the period 2019 aimed at evaluating the relationship between cultural values and income smoothing policy in some industrial companies in the Kurdistan region. Data were collected from seven Iraqi industrial companies based in the Kurdistan Region. A survey was conducted using a quantitative method. The researcher distributed 80 questionnaires to select respondents. Of the total questionnaires distributed, the response rate was 0.775 percent. SPSS software was used to analyze the data collected based on descriptive statistics (Pearson Correlation Coefficient and Coefficient regression). A Multivariate Regression Model computed on Standard OLS Formula has been used to estimate the relationship. This study provided several results and the most notable is the presence of a positive moral relationship between the six dimensions of cultural values on income smoothing policy, as well as the presence of effects of cultural values on income smoothing policies. The findings of this research are intended to inspire administrators and employees who directly influence the behavior of administrators and employees in identifying their strengths and weaknesses. This research has revealed the key role of the six dimensions of cultural values on income smoothing policy in the business settings in the Kurdistan region of Iraq. This was clear taking into account the lower Power Distance Index and additionally, lower Uncertainty Avoidance Index and Femininity, Long Term Orientation, future planning and perseverance, and finally, indulgence.