Stock Market Participation Puzzle in Emerging Economies: the Case of Lithuania

We examine underlying factors that explain an exceptionally low stock market participation rate among Lithuanian households by carrying out a comprehensive survey of mass affluent individuals. The probit regression analysis of the survey results indicates that lack of financial literacy, low risk tolerance and lack of trust in financial institutions are the three key factors explaining the stock market participation puzzle in Lithuania, while high investment fees, high stock market return expectations or underdeveloped local capital markets do not have a significant effect. The paper also examines whether the same factors also have influence on investment fund, bond and real estate market participation rates. Interestingly, lack of financial literacy, low risk tolerance, lack of trust in financial institutions and high stock market return expectations increase household participation rate in real estate market. The latter finding should be of particular interest to macro-prudential policy makers as increasing financial literacy of households and increasing trust in financial intermediaries would likely cause higher stock market participation at the expense of investments in local real estate market thus not only improving household portfolio diversification and liquidity, but also potentially mitigating local real estate boom and bust cycles

Management control systemsand stakeholders’ interests in Lithuanian multinational companies: Cases from the telecommunications industry

The paper addresses the issue of introduction and effectiveness of modern management control systems (MCS) in Lithuanian enterprises controlled by foreign owners. Modern management control systems are supposed to provide local management with useful information, reflecting firm's performance from different stakeholders’ perspectives. However, the tools of management control sometimes fail in providing with this main function. Thus, the question is raised as to the extent to which performance management systems (PMS) are effective within Lithuanian telecommunication companies, when they are implemented by foreign parent companies in the rapidly changing environment of the industry. The paper reports the findings of a survey of 78 top and middle level managers of two telecommunication companies. Results of the research indicate that differences in the effectiveness of MCS do exist due to the specifics of governance structures within the telecommunication companies. Nevertheless, it is concluded that, when used interactively, a PMS is potentially effective even if a company operates in a rapidly changing environment. First published online: 14 Oct 201

Development of elements of corporate governance system in Lithuania in the transition period

Vytauto Didžiojo universiteta

Development of elements of corporate governance system in Lithuania in the transition period

Vytauto Didžiojo universiteta

Korporatyvinio valdymo transformacijos ir jų ekonominis kontekstas : habilitacijos procedūrai teikiamų mokslinių darbų apžvalga : socialiniai mokslai, ekonomika (04 S)

Aut. darbų sąrašas: p. 24-27 (23 pavad.)Vytauto Didžiojo universiteta

Lithuania [country report]

Vytauto Didžiojo universiteta

Company value creation and its impact on shareholder return : evidence from the Baltic states

The concept of company value creation, as one of the key goals of management, has been developed and discussed by practitioners and researchers for several decades. As limitations of traditional accountingbased company performance measures have increasingly caused dissatisfaction, the discussion on value creation measurement and the relationship between value creation and shareholder return has attracted significant attention in research literature. Investigation of relationship between value creation indicators and shareholder return has been widespread, but with diverse outcomes. Limited attention has been drawn to analysis of EVA and its evolution in small markets. The aim of the paper is to analyse value creation of Baltic listed companies and investigate whether value creation indicator outperforms accounting-based alternative measures of firm performance in relationship with stock return in the Nasdaq OMX Baltic Stock Exchange in the period of 2007 – 2010. The mixed results of empirical research show ability of EVA indicator to outperform accounting performance measures in explaining stock returnFinansų katedraVytauto Didžiojo universiteta

Shareholders rights' issues in the context of the development of Lithuanian capital markets

Gauta 1999 09 30Vytauto Didžiojo universiteta

Finanšu tirgi = Financial markets : Leonardo da Vinci lifelong learning programme project “Development and Approbation of Applied Courses Based on the Transfer of Teaching Innovations in Finance and Management for Further Education of Entrepreneurs and Specialists in Latvia, Lithuania and Bulgaria”

Finansų katedraVytauto Didžiojo universiteta