The Effects of International Accounting Standardization on Business Performance: Evidence from Hungary

Abstract

The purpose of this study was to measure the differences between national rules and the international standards, evaluating and analyzing their effects on the shifting business environment. The unified business information system will lead to new types of analysis and data, furthermore with the possible integration of new indicators from the business environment of certain countries. The results show that those businesses which have adopted international standards achieved higher and statistically significant positive coefficients than those following local accounting rules. Companies which had adopted accounting standards also provided higher quality and value relevant accounting information systems. As a further consequence of international accounting standards adoption, corporate policy and requirements became gradually more clear and transparent – in the same way as the application and implementation of the standards became more user-friendly.