How does a country’s historical development affect a company’s accountancy?- A field study of the Hungarian airline company Malév

Abstract: When a country is going through bigger social changes, the companies within that country tend to get affected by the changes. Hungary was part of the eastern bloc during the communist era and underwent major social normative changes over time. This study is based on Malév Hungarian Airlines, a company that was established under strict communist control and underwent major changes during its fifty first years. This dissertation will describe how the accountancy within a company is affected by the historical development of the country it is located in. The purpose is to provide the reader with basic understanding on what has been influencing Hungary’s accountancy within companies, in context to the historical development of the country. The study is based on a literature review and tested in an empirical study with a qualitative approach. The literature review is based on two theories, namely the Agency Theory and the Institutional Theory. The theories and the empirical framework are strengthened by scientific articles and books. The findings indicate that both social normative factors and ownership changes within a company, are two major factors that influence a company’s shaping of their accountancy. Further that a regulated, coercive society tends to have an inhibitory effect on a company’s accountancy.