DOI: 10.21637/GT.2012.00.07.

International Accounting Standardization in the Changing Economic Environment

BEKE, Jenő

This study aims at measuring the differences between the national rules and the international methods by countries, then the valuing and analyzing their effects on the changing economic environments. International accounting standards are new, innovative global methods for business information systems and they are able to harmonise financial regime both world-wide and in Hungary also. The increased globalisation of markets, the complexity of commercial trading and the concentration of business in global competition have led to a still greater need for international harmonisation.
This study examined the impact of the adoption of international accounting standards on the economic performance of businesses listed on the Budapest Stock Exchange in Hungary. The financial data are taken from accounts published on the Budapest Stock Exchange and in the Hungarian Business Information database. The results show that those businesses which have adopted international standards achieved higher and statistically significant positive coefficients than those following local accounting rules. We found that larger firms (those with more leverage, higher market capitalization and substantial foreign sales) were more likely to have adopted international accounting standards.

KEYWORDS: standardization, harmonization, globalization, economic effects, Hungary

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