The historical evolution of accounting in China: the effects of culture
DOI:
https://doi.org/10.26784/issn.1886-1881.v4i7.175Keywords:
Environmental, Factors, Accounting Records, Culture, China, Confucianism, Feng Shui, Yin-Yang Polarity, Single & Double-Entry bookkeeping methodsAbstract
Many recent studies have argued that China integrates its traditional rules, cultural interests and its life
style into its accounting system. “Culture” is the main point for their accounting system. Hofstede, Gray,
Mueller, and some other empiricist accounting researchers who emphasize the influence of cultural effects on
national accounting improvements claim that Chinese Accounting has been dominated by Chinese “Culture”.
This paper presents three Chinese cultural variables (e.g. Confucianism, Feng Shui, Buddhism, Yin-
Yang, etc.) that have shaped Chinese accounting behaviors and techniques. In China, the Chinese accounting
system was traditionally based on Confucian practices and ancient wisdom; these elements still influence the
current system. In this paper, the influences are discussed from a historical perspective with regard to cultural
variables in China. The influences studied focused on bookkeeping methods, accounting practices, accounting
information, etc.
The evidence from the literature indicates that regardless of changes in government regimes, economic
management styles in China the influence of culture on accounting, its basic characteristics have survived. For
instance Yin-Yang polarity has still balanced Chinese accounting; Chinese economic logic metamorphosed to
market-oriented model practices, but Chinese mysticism has maintained its logic on the People’s Republic of
China.
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