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PurposeThe purpose of this paper is to explore the impact of firm-, finance- and country-specific indicators to the performance of companies under the COVID-19 outbreak.Design/methodology/approachThe study uses a regression performance model for enterprises during the COVID-19 crisis. The investigation is based upon a data set of 5,730 firms from 13 countries collected by the World Bank through enterprise surveys. The author combined the analysis of traditional performance measurements with the testing of relatively novel variables.FindingsThis study confirms the significance of multiple factors for company performance: sector, size, participation in exports and market demand for firms' products. Robust financing solutions during the coronavirus pandemic period include equity contributions, followed by firms' cash balances and debt. Support by a government, however, has not yet been confirmed as a significant source of finance. This paper also suggests the importance of country-specific factors for the performance of enterprises, including the level of economic development and the corporate governance infrastructure.Practical implicationsThe research outcomes might assist regulatory bodies, policymakers and companies in their formulation of public and corporate governance strategies concerning future emergency preparedness and responses.Originality/valueThis paper is among the first empirical studies in the management realm that addresses the impact of COVID-19 on company performance, with cross-national empirical data.

Purpose – The purpose of this paper is to explore the impact of firm-, finance- and country-specificindicators to the performance of companies under the COVID-19 outbreak. Design/methodology/approach – The study uses a regression performance model for enterprisesduring the COVID-19 crisis. The investigation is based upon a data set of 5,730 firms from 13 countriescollected by the World Bank through enterprise surveys. The author combined the analysis of traditionalperformance measurements with the testing of relatively novel variables. Findings – This study confirms the significance of multiple factors for company performance: sector,size, participation in exports and market demand for firms' products. Robust financing solutions duringthe coronavirus pandemic period include equity contributions, followed by firms' cash balances anddebt. Support by a government, however, has not yet been confirmed as a significant source of finance.This paper also suggests the importance of country-specific factors for the performance of enterprises,including the level of economic development and the corporate governance infrastructure. Practical implications – The research outcomes might assist regulatory bodies, policymakers andcompanies in their formulation of public and corporate governance strategies concerning futureemergency preparedness and responses. Originality/value – This paper is among the first empirical studies in the management realm thataddresses the impact of COVID-19 on company performance, with cross-national empirical data.Keywords Company performance, Financial sources, COVID-19, Country-specific factors,Firm-specific indicators

Difference between foreign and local investors in their respective assessments of business climate constraints has not yet been given much attention in research literature. Drawing on institutional theory and the concept of liability of foreignness (LoF), the study contributes towards filling this gap in the context of business climate variables faced by foreign firms operating in transition economies. The Mann-Whitney U Test is applied to firm-level data of 30 transition economies in Eastern Europe and Central Asia. We found that foreign investors experience less trouble with access to finance, tax rate and competition towards the informal sector compared with domestic firms. Conversely, such variables as courts, custom and trade regulations, inadequate workforce, and labor regulations disturbed foreign investors more than local companies. LoF appears as a balanced outcome of firm-specific advantages, possessed by foreign investors, and location and institutional advantages, utilized by the local companies. The results point towards important possible synergies in enhancing the business climate in transition economies by policy-makers, and to potential conflict between policy reforms accommodating the interests of foreign capital against those of domestic firms.

FDI (foreign direct investment) of Swedbank in Ukraine is an example of unsuccessful investment in transition economies. The Case Study is presented in relation with Swedbank's internationalization strategy and rapidly changing investment environment in transition economies and globally. Learning objectives include helping students to develop analytical skills in order to understand how political, economic, financial and social factors effect internalization strategy through FDI. The Case Study should help students to understand the importance of an appropriate long-term strategy of a firm entering transition economies, understand the investment environment of a foreign country and choose the best course of action for a distressed firm considering alternative scenarios. Lessons learned from the Case Study can be beneficial for students studying international business, but also for future decision-makers that would be acting in complex environments under rapidly changing situations. The author developed the Case from secondary sources: Swedbank's annual reports and press-releases, information published by multilateral organizations and government agencies, research from investment banking houses and reputable news agencies. This Case is written solely for educational purposes and is not intended to analyze successful or unsuccessful internalization strategy through FDI in transition economies.

FDI (foreign direct investment) of Swedbank in Ukraine is an example of unsuccessful investment in transition economies. The Case Study is presented in relation with Swedbank's internationalization strategy and rapidly changing investment environment in transition economies and globally. Learning objectives include helping students to develop analytical skills in order to understand how political, economic, financial and social factors effect internalization strategy through FDI. The Case Study should help students to understand the importance of an appropriate long-term strategy of a firm entering transition economies, understand the investment environment of a foreign country and choose the best course of action for a distressed firm considering alternative scenarios. Lessons learned from the Case Study can be beneficial for students studying international business, but also for future decision-makers that would be acting in complex environments under rapidly changing situations. The author developed the Case from secondary sources: Swedbank's annual reports and press-releases, information published by multilateral organizations and government agencies, research from investment banking houses and reputable news agencies. This Case is written solely for educational purposes and is not intended to analyze successful or unsuccessful internalization strategy through FDI in transition economies.

The article addresses the issue of the business climate in Russia from the Swedish investors' perspective and relates its to a general theoretical debate in the field. Statistical tests suggests that the majority of variables relating to the business climate has deteriorated between 2012 and 2014. The findings support several mainstream theories regarding the business climate but also demonstrate some contradictions that would require further investigation. These include the reaction of Swedish business to the escalation of political tensions between Russia and the West and the factor of corruption, which is not viewed as serious enough to fully discourage foreign investors from staying in Russia.

The purpose of this project is to describe and explain the foreign investment decision process in the uncertain and turbulent environment of transition economy. By getting an in-depth understanding of how decision-making works in the environment of transition economy, the study intends to contribute to the development of business administration theory in the area of foreign investment decision-making, particularly its application in the turbulent and uncertain world. Theoretical 'blocks', elaborated on the basis of literature study, include the following concepts: the framework of transition economy; initial motivation (or reasons) of companies to make foreign direct investments (FDI); investigation of the investment climate and information collection methods; project evaluation and investment decision criteria; risk assessment factors and risk reduction measures. Transition economy is defined in the study as 'a non-planned, non-market economy' where the new emerging market institutions coexist with the bureaucracy and hierarchy inherited from the old administrative system. Investment projects, therefore, should probably be seen as being under institutional influence from both the local (i.e. transition economy) and the Western investor's home country environments. The empirical data presented in the paper also shows that it is necessary to establish the relevant economic, legal, political and social institutions in order to attract FDI. The study further includes the analysis of the main components and features of transition economies and their influence on FDI decision-making. One of the results of the study is that FDI decision-making in transition economies is largely consistent with different theoretical approaches suggested in the literature. On the other hand, the empirical support obtained for different theoretical approaches is often questionable and opened to alternative interpretations. The presented project suggests that theoretical perspectives do not preclude each other, but rather have a complimentary character. The study attempts to contribute to the mainstream FDI theories through a firm-level approach based on the case studies. Two in-depth case studies are presented in the paper: Ericsson's direct investments in Russia and Vattenfall's investments in the Baltic countries. A formal questionnaire based on the parameters of theoretical 'blocks' was created and 25 top executives from Ericsson and Vattenfall who participated in FDI decision-making were surveyed. The empirical investigation took place during the period 1997 - 1998 with partial updating of the cases during the year 2000. The study shows that where companies confront stable environments, investment decision routines and procedures will be less necessary and important than where market uncertainty is high. The strong appreciation of the local business partners for properly done investment calculations increases the importance of capital budgeting in transition economies more than in developed market economies. Besides, traditional investment appraisal methods provide managers with an 'objective' or 'materialistic' feedback for the decision-making in the rapidly changing uncertain environment. On the other hand, the study emphasises the importance of strategy over financial techniques and argues that FDI decisions in transition economies should be based on methods consistent with the company's long-term objectives. In case of permanent changes, new approaches as well as better co-ordination of traditional techniques with strategic, political, historical, geographical and cultural issues are required. Ericsson' s direct investments in Russia are presented in the paper in connection with other factors: the company's historical involvement in Russia, marketing strategy, human resource development, privatisation and restructuring of the telecommunication sector in Russia, etc. Nordic Electric Power Co-operation (Nordel), the EU' s decision in 1996 to create an internal electricity market in Europe, Baltic ring study, future plans to privatise the energy companies in the Baltic countries, etc., are the framework to present the second case. An application of project evaluation and risk assessment techniques for broader and more complicated environments shows that investment decision-making is probably as much, if not more, a social, political and cultural technology as an economic one. The study argues then that the rational choice decision-making model often co-exists with alternative models elaborated in social science - limited rationality, political and garbage can. According to the empirical data, the investment decisions are largely based on intuition, business experience and judgement, personal contacts with representatives from the local country, and these investment criteria are inevitable and acceptable in a situation of total chaos and permanent change. The right chosen partner, for example, is one of the major criteria for the success of the investment project in a transition economy. One of the outcomes of this study is that the revitalised form of investment decision-making will differ rather markedly from much of what has gone before: less emphasis on the quantitative aspects of capital budgeting, more on the qualitative aspects of companies and investment environment. The project also argues that determinants, approaches and criteria of investment activity in transition economies are largely consistent with patterns observed in other parts of the world. A few specific environmental conditions of transition economies, however, are shown in the study to affect the pattern of FDI decision-making. The level of turbulence is still different compared to the developed market economies due to uncertainties and unpredictibilities associated with environment of transition economies. Other major differences are the large power distance with authoritarian leadership, strong hierarchy and bureaucracy as well as the vital role of personal contacts in transition economies. It is not clear, however, if these features of transition economies should be seen as inherited from the past communist system or as an alternative way to organise the economic actors through networks, a way that is natural and appropriate for the majority of Asian societies.

The purpose of this project is to describe and explain the foreign investment decision process in the uncertain and turbulent environment of transition economy. By getting an in-depth understanding of how decision-making works in the environment of transition economy, the study intends to contribute to the development of business administration theory in the area of foreign investment decision-making, particularly its application in the turbulent and uncertain world. Theoretical 'blocks', elaborated on the basis of literature study, include the following concepts: the framework of transition economy; initial motivation (or reasons) of companies to make foreign direct investments (FDI); investigation of the investment climate and information collection methods; project evaluation and investment decision criteria; risk assessment factors and risk reduction measures. Transition economy is defined in the study as 'a non-planned, non-market economy' where the new emerging market institutions coexist with the bureaucracy and hierarchy inherited from the old administrative system. Investment projects, therefore, should probably be seen as being under institutional influence from both the local (i.e. transition economy) and the Western investor's home country environments. The empirical data presented in the paper also shows that it is necessary to establish the relevant economic, legal, political and social institutions in order to attract FDI. The study further includes the analysis of the main components and features of transition economies and their influence on FDI decision-making. One of the results of the study is that FDI decision-making in transition economies is largely consistent with different theoretical approaches suggested in the literature. On the other hand, the empirical support obtained for different theoretical approaches is often questionable and opened to alternative interpretations. The presented project suggests that theoretical perspectives do not preclude each other, but rather have a complimentary character. The study attempts to contribute to the mainstream FDI theories through a firm-level approach based on the case studies. Two in-depth case studies are presented in the paper: Ericsson's direct investments in Russia and Vattenfall's investments in the Baltic countries. A formal questionnaire based on the parameters of theoretical 'blocks' was created and 25 top executives from Ericsson and Vattenfall who participated in FDI decision-making were surveyed. The empirical investigation took place during the period 1997 - 1998 with partial updating of the cases during the year 2000. The study shows that where companies confront stable environments, investment decision routines and procedures will be less necessary and important than where market uncertainty is high. The strong appreciation of the local business partners for properly done investment calculations increases the importance of capital budgeting in transition economies more than in developed market economies. Besides, traditional investment appraisal methods provide managers with an 'objective' or 'materialistic' feedback for the decision-making in the rapidly changing uncertain environment. On the other hand, the study emphasises the importance of strategy over financial techniques and argues that FDI decisions in transition economies should be based on methods consistent with the company's long-term objectives. In case of permanent changes, new approaches as well as better co-ordination of traditional techniques with strategic, political, historical, geographical and cultural issues are required. Ericsson' s direct investments in Russia are presented in the paper in connection with other factors: the company's historical involvement in Russia, marketing strategy, human resource development, privatisation and restructuring of the telecommunication sector in Russia, etc. Nordic Electric Power Co-operation (Nordel), the EU' s decision in 1996 to create an internal electricity market in Europe, Baltic ring study, future plans to privatise the energy companies in the Baltic countries, etc., are the framework to present the second case. An application of project evaluation and risk assessment techniques for broader and more complicated environments shows that investment decision-making is probably as much, if not more, a social, political and cultural technology as an economic one. The study argues then that the rational choice decision-making model often co-exists with alternative models elaborated in social science - limited rationality, political and garbage can. According to the empirical data, the investment decisions are largely based on intuition, business experience and judgement, personal contacts with representatives from the local country, and these investment criteria are inevitable and acceptable in a situation of total chaos and permanent change. The right chosen partner, for example, is one of the major criteria for the success of the investment project in a transition economy. One of the outcomes of this study is that the revitalised form of investment decision-making will differ rather markedly from much of what has gone before: less emphasis on the quantitative aspects of capital budgeting, more on the qualitative aspects of companies and investment environment. The project also argues that determinants, approaches and criteria of investment activity in transition economies are largely consistent with patterns observed in other parts of the world. A few specific environmental conditions of transition economies, however, are shown in the study to affect the pattern of FDI decision-making. The level of turbulence is still different compared to the developed market economies due to uncertainties and unpredictibilities associated with environment of transition economies. Other major differences are the large power distance with authoritarian leadership, strong hierarchy and bureaucracy as well as the vital role of personal contacts in transition economies. It is not clear, however, if these features of transition economies should be seen as inherited from the past communist system or as an alternative way to organise the economic actors through networks, a way that is natural and appropriate for the majority of Asian societies.