Unless the researcher has an understanding of the unique national characteris tics and how they impact the research question, incorrect inferences can be made.6 Another problem when conducting cross-national research is the reliability of the data. It is likely that the lower the country's level of development, the less the accuracy of the accounting data provided. Whether the cause of less accurate data is attributable to poor company disclosures or insufficient collection and distribution of information by data providers, researchers should be aware that, when comparing countries' accounting data, variance in accuracy will be a significant issue.