Klaipėdos universitetas

Intensive international activity of banks caused by fairly recently lifted financial restrictions in many countries has been a subject of great scientific interest ever since. The article describes various short-term consequences of foreign bank penetration in the financial markets of some of the regions of the world. The authors pay specific attention to the reasons and modes of foreign bank entry in emerging market and transition market economies as well as to the differences in the impact of such entry on the stability and efficiency of financial systems and economies of the countries of Asia, Latin America, Central and Eastern Europe and Russia. Research methods: systemic, comparative and logical analysis.

The aim of this article: To analyze the theoretical assumptions of organizational culture and to investigate the organizational culture in two Lithuanian and foreign capital organizations.

The objective of this paper is to analyze the results of recent empirical research concerning the impact of corporate governance on firm performance and reflect potential research design problems which lead to inconsistent results. By means of a literature review including all articles of academic journal data bases with a journal quality rating of at least a C-rating in the VHB Journal Rating or above ‘3’ in the ABS Academic Journal Rating, respectively, the recent empirical research articles are analyzed regarding their main results. Two main groups of studies are identified: studies on company level to determine the impact of single corporate governance variables such as board size, chairman-CEO duality, etc. on a small set of performance measures, and studies with a larger sample and a longer time period using multivariate analysis to determine the overall impact of corporate governance on companies measured with an extended set of financial research variables measuring multiple dimensions of impact. Overall, the results of recent research show no consistent impact of corporate governance on firm performance. Beside this, a trend to studies with larger samples and longer time periods can be seen. However, also these studies come to inconsistent results. The inconsistencies of empirical research may be grounded in mostly small size of samples and small time periods, and the application of research constructs instead of financial research metrics to measure firm performance. As this is a conceptual paper, the objective is to define a research design based on the findings of this analysis.

As the global economy grows, so does the demand for energy. Investment in clean energy projects, including geothermal, is increasingly important to help meet these growing energy needs. Clean energy projects are also important for environmental reasons and as part of the battle against climate change. Many clean energy sources in the world are located in developing countries, including emerging market economies. Investors in developing countries are normally faced with higher risks than those investing in high income developed economies. Higher risks in turn reduce capital flows to developing countries. This is particularly true during times of economic and financial crisis. At the same time energy projects tend to be large and capital intensive with long repayment periods. Energy projects also often require partnership between the public and private sectors i.e. public private partnerships (PPPs). Efficient allocation of risks among the different partners in PPPs is important for success, generally results in more profitable projects, and is more likely to benefit all parties involved. This article discusses public private partnerships in the energy sector in developing countries, characteristics of developing countries, the risk faced by investors, the absence of an international regime for investment, and risk mitigation instruments offered by international financial institutions to manage risks.

Innovation is the basis for competitiveness. At the same time, the primary objective of the manager is stockholder wealth maximization,therefore it is essential to study the relationship between innovation and value. The aim of the study is to evaluate the impact ofinnovation on company value. The research covered Baltic listed companies for the period of 2005−2011. The study finds thatinnovative companies have a higher value and they are bigger. Within innovative companies it was observed that higher companyvalue is achieved if their ratio of intangible assets exceeds 1 %. Using correlation and multiple regression analyses it was found thatinnovation is a significant determinant of company value, whereas size is a weaker factor and growth is the least significant factor.The authors of the paper recommend for companies to invest in innovation process, since it increases company value, especially ifthe ratio of intangible assets exceeds 1 %.

The 2008 global economic and financial crisis hit hard in Iceland. During the crisis its three largest banks all collapsed in just a few days with severe consequences for the economy and the people. Prior to the crisis, Iceland, a high income OECD country, had experienced strong growth and unprecedented expansion in overseas investments and activities, especially in the financial sector. This article focuses on the actions of the international community when the Icelandic authorities, during a period of great uncertainty, sought assistance to protect the Icelandic economy before the banking system fell. The methodology used in this article is the case study method. Compared to other research methods, a case study enables the researcher to examine the issues involved in greater depth. Arguably, the governments of the Netherlands and the UK tried to fake reality by suggesting that the Icelandic government, i.e. Icelandic taxpayers, should be made responsible for paying the debts of private banks. The EFTA Court ruling confirms that Iceland did not have this responsibility. In retrospect one can argue that the EU showed dishonesty by supporting the Netherlands and the UK in demanding a sovereign guarantee for failed private banks. The Icelandic banking expansion exposed weaknesses in EU integration and may also confirm a certain incompetence within the EU in designing an EU-wide banking system.

Export Credit Agencies (ECAs) have played an important role in cushioning the downturn in cross border trade during the current economic and financial crisis. This article discusses the role of ECAs in facilitating cross border trade to emerging markets as well as the economic rationale for the existence of such agencies. It also demonstrates how selected risk mitigation instruments of ECAs, namely: (i) buyer credit guarantee, (ii) supplier credit guarantees and (iii) export loans have been applied in practice. Finally cases are presented that highlight how companies have used the service of ECAs, for example, to obtain better terms, including longer term loans and/or lower interest rates.