Lithuania faces difficult dilemmas in the field of old age security. Aging population, weak bonds between current wages, salaries and amount of (size of) future pensions causes certain dissatisfactions and risks. They alongside with the pressure of certain interest groups which are interested in possibility to enter financial flows and to take benefits from partial privatization of these flows create certain gnoseological, political and ideological climate surrounding the issue of pension reform. In these circumstances the use of neutral, scientific approach would be helpful. Together with more open, comprehensive, democratic discourse it would add to the rationality, prudence of the decisions concerning the issue. Author of the article argues that the currently functioning pay-as-you-go (PAYG) system together with some shortcomings have its advantages which should not be neglected in the discussion on the pension reforms. On the other hand private pension system based on individual accumulation is not so advantages and effective as its portrayed by its proponents. It is connected with rather high risk both for individuals and for state. The danger of loss of money in the financial markets in case of downfall of the value of securities and the threat to budgetary stability of the country are two major reasons to refrain from overly enthusiastic attitudes towards private, especially mandatory, pension funds. The experience of Argentina, Hungary, Poland should caution us against impulsive, non-comprehensive decision. West European and especially Scandinavian pattern could serve us a good service.
Lithuania faces difficult dilemmas in the field of old age security. Aging population, weak bonds between current wages, salaries and amount of (size of) future pensions causes certain dissatisfactions and risks. They alongside with the pressure of certain interest groups which are interested in possibility to enter financial flows and to take benefits from partial privatization of these flows create certain gnoseological, political and ideological climate surrounding the issue of pension reform. In these circumstances the use of neutral, scientific approach would be helpful. Together with more open, comprehensive, democratic discourse it would add to the rationality, prudence of the decisions concerning the issue. Author of the article argues that the currently functioning pay-as-you-go (PAYG) system together with some shortcomings have its advantages which should not be neglected in the discussion on the pension reforms. On the other hand private pension system based on individual accumulation is not so advantages and effective as its portrayed by its proponents. It is connected with rather high risk both for individuals and for state. The danger of loss of money in the financial markets in case of downfall of the value of securities and the threat to budgetary stability of the country are two major reasons to refrain from overly enthusiastic attitudes towards private, especially mandatory, pension funds. The experience of Argentina, Hungary, Poland should caution us against impulsive, non-comprehensive decision. West European and especially Scandinavian pattern could serve us a good service.
The importance of financial flows to and from the EU budget is widely recognized because contributions to the EU budget and payments from it undoubtedly influence not only the expenditures and revenues of the national budget, but also the priorities of national policy and the whole economy of the country. But the level of the EU financial assistance depends mainly on the EU budget structure: its size, main budget financing principles and the priorities Europe has chosen. The structure of the current EU budget was formed in 1987, when the European Commission submitted its different proposals on every category of the EU budget expenditure and its own resources system. Twenty years passed, and Europe has changed dramatically: the number of EU member states increased from 12 to 27, new priorities as well as new problems that which can be solved at the EU level only have appeared. Therefore Europe's policies and their financing need to evolve new priorities. The first public step in the process of the reform of all aspects of EU spending and resources was made in September 2007 by the European Commission through the publication of the Consultation paper on the EU budget reform. The aim of this consultation is to determine the structure and direction of the European Union's spending priorities to meet the challenges of the globalized world in the next decade and beyond. The present EU budget comprises five headings which seem to fully correspond to the priorities of modern Europe because it reflects the main and most up-to-date European policies.
The importance of financial flows to and from the EU budget is widely recognized because contributions to the EU budget and payments from it undoubtedly influence not only the expenditures and revenues of the national budget, but also the priorities of national policy and the whole economy of the country. But the level of the EU financial assistance depends mainly on the EU budget structure: its size, main budget financing principles and the priorities Europe has chosen. The structure of the current EU budget was formed in 1987, when the European Commission submitted its different proposals on every category of the EU budget expenditure and its own resources system. Twenty years passed, and Europe has changed dramatically: the number of EU member states increased from 12 to 27, new priorities as well as new problems that which can be solved at the EU level only have appeared. Therefore Europe's policies and their financing need to evolve new priorities. The first public step in the process of the reform of all aspects of EU spending and resources was made in September 2007 by the European Commission through the publication of the Consultation paper on the EU budget reform. The aim of this consultation is to determine the structure and direction of the European Union's spending priorities to meet the challenges of the globalized world in the next decade and beyond. The present EU budget comprises five headings which seem to fully correspond to the priorities of modern Europe because it reflects the main and most up-to-date European policies.
The importance of financial flows to and from the EU budget is widely recognized because contributions to the EU budget and payments from it undoubtedly influence not only the expenditures and revenues of the national budget, but also the priorities of national policy and the whole economy of the country. But the level of the EU financial assistance depends mainly on the EU budget structure: its size, main budget financing principles and the priorities Europe has chosen. The structure of the current EU budget was formed in 1987, when the European Commission submitted its different proposals on every category of the EU budget expenditure and its own resources system. Twenty years passed, and Europe has changed dramatically: the number of EU member states increased from 12 to 27, new priorities as well as new problems that which can be solved at the EU level only have appeared. Therefore Europe's policies and their financing need to evolve new priorities. The first public step in the process of the reform of all aspects of EU spending and resources was made in September 2007 by the European Commission through the publication of the Consultation paper on the EU budget reform. The aim of this consultation is to determine the structure and direction of the European Union's spending priorities to meet the challenges of the globalized world in the next decade and beyond. The present EU budget comprises five headings which seem to fully correspond to the priorities of modern Europe because it reflects the main and most up-to-date European policies.
The importance of financial flows to and from the EU budget is widely recognized because contributions to the EU budget and payments from it undoubtedly influence not only the expenditures and revenues of the national budget, but also the priorities of national policy and the whole economy of the country. But the level of the EU financial assistance depends mainly on the EU budget structure: its size, main budget financing principles and the priorities Europe has chosen. The structure of the current EU budget was formed in 1987, when the European Commission submitted its different proposals on every category of the EU budget expenditure and its own resources system. Twenty years passed, and Europe has changed dramatically: the number of EU member states increased from 12 to 27, new priorities as well as new problems that which can be solved at the EU level only have appeared. Therefore Europe's policies and their financing need to evolve new priorities. The first public step in the process of the reform of all aspects of EU spending and resources was made in September 2007 by the European Commission through the publication of the Consultation paper on the EU budget reform. The aim of this consultation is to determine the structure and direction of the European Union's spending priorities to meet the challenges of the globalized world in the next decade and beyond. The present EU budget comprises five headings which seem to fully correspond to the priorities of modern Europe because it reflects the main and most up-to-date European policies.
Severe global economic impacts of recent financial crises made it more important understanding how market patterns are transmitted, intensifying the need to determine the relationship between financial markets. With investment flows transferred from stock to government bond markets during financial crises, researchers draw their attention to bond markets, exposing strengthening comovements between them. The aim of this research was to prepare the methodology for identification and assessment of the factors influencing government bond market comovements and to test this methodology in the global environment. Research methodology was based on the proposed model that includes government bond market comovements and global, fundamental and bilateral factors influencing them. Empirical research was carried out in 75 government bond markets in 2008-2016. The results showed that government bond markets significantly commoved in clusters. The influence of global factors on government bond market comovements was less strong than expected, while fundamental factors had a strong influence on the comovements: the more similar two countries were in their fundamentals, the stronger their government bond markets commoved. Only one bilateral factor – foreign direct investment – had an influence on government bond market comovements. The fact that government bond market comovements were more dependent on fundamental rather than the global factors creates more diversification possibilities for investors as well as more possibilities for governments to reduce their cost of debt by improving their fundamentals.
Severe global economic impacts of recent financial crises made it more important understanding how market patterns are transmitted, intensifying the need to determine the relationship between financial markets. With investment flows transferred from stock to government bond markets during financial crises, researchers draw their attention to bond markets, exposing strengthening comovements between them. The aim of this research was to prepare the methodology for identification and assessment of the factors influencing government bond market comovements and to test this methodology in the global environment. Research methodology was based on the proposed model that includes government bond market comovements and global, fundamental and bilateral factors influencing them. Empirical research was carried out in 75 government bond markets in 2008-2016. The results showed that government bond markets significantly commoved in clusters. The influence of global factors on government bond market comovements was less strong than expected, while fundamental factors had a strong influence on the comovements: the more similar two countries were in their fundamentals, the stronger their government bond markets commoved. Only one bilateral factor – foreign direct investment – had an influence on government bond market comovements. The fact that government bond market comovements were more dependent on fundamental rather than the global factors creates more diversification possibilities for investors as well as more possibilities for governments to reduce their cost of debt by improving their fundamentals.
Severe global economic impacts of recent financial crises made it more important understanding how market patterns are transmitted, intensifying the need to determine the relationship between financial markets. With investment flows transferred from stock to government bond markets during financial crises, researchers draw their attention to bond markets, exposing strengthening comovements between them. The aim of this research was to prepare the methodology for identification and assessment of the factors influencing government bond market comovements and to test this methodology in the global environment. Research methodology was based on the proposed model that includes government bond market comovements and global, fundamental and bilateral factors influencing them. Empirical research was carried out in 75 government bond markets in 2008-2016. The results showed that government bond markets significantly commoved in clusters. The influence of global factors on government bond market comovements was less strong than expected, while fundamental factors had a strong influence on the comovements: the more similar two countries were in their fundamentals, the stronger their government bond markets commoved. Only one bilateral factor – foreign direct investment – had an influence on government bond market comovements. The fact that government bond market comovements were more dependent on fundamental rather than the global factors creates more diversification possibilities for investors as well as more possibilities for governments to reduce their cost of debt by improving their fundamentals.
Severe global economic impacts of recent financial crises made it more important understanding how market patterns are transmitted, intensifying the need to determine the relationship between financial markets. With investment flows transferred from stock to government bond markets during financial crises, researchers draw their attention to bond markets, exposing strengthening comovements between them. The aim of this research was to prepare the methodology for identification and assessment of the factors influencing government bond market comovements and to test this methodology in the global environment. Research methodology was based on the proposed model that includes government bond market comovements and global, fundamental and bilateral factors influencing them. Empirical research was carried out in 75 government bond markets in 2008-2016. The results showed that government bond markets significantly commoved in clusters. The influence of global factors on government bond market comovements was less strong than expected, while fundamental factors had a strong influence on the comovements: the more similar two countries were in their fundamentals, the stronger their government bond markets commoved. Only one bilateral factor – foreign direct investment – had an influence on government bond market comovements. The fact that government bond market comovements were more dependent on fundamental rather than the global factors creates more diversification possibilities for investors as well as more possibilities for governments to reduce their cost of debt by improving their fundamentals.
Severe global economic impacts of recent financial crises made it more important understanding how market patterns are transmitted, intensifying the need to determine the relationship between financial markets. With investment flows transferred from stock to government bond markets during financial crises, researchers draw their attention to bond markets, exposing strengthening comovements between them. The aim of this research was to prepare the methodology for identification and assessment of the factors influencing government bond market comovements and to test this methodology in the global environment. Research methodology was based on the proposed model that includes government bond market comovements and global, fundamental and bilateral factors influencing them. Empirical research was carried out in 75 government bond markets in 2008-2016. The results showed that government bond markets significantly commoved in clusters. The influence of global factors on government bond market comovements was less strong than expected, while fundamental factors had a strong influence on the comovements: the more similar two countries were in their fundamentals, the stronger their government bond markets commoved. Only one bilateral factor – foreign direct investment – had an influence on government bond market comovements. The fact that government bond market comovements were more dependent on fundamental rather than the global factors creates more diversification possibilities for investors as well as more possibilities for governments to reduce their cost of debt by improving their fundamentals.
Severe global economic impacts of recent financial crises made it more important understanding how market patterns are transmitted, intensifying the need to determine the relationship between financial markets. With investment flows transferred from stock to government bond markets during financial crises, researchers draw their attention to bond markets, exposing strengthening comovements between them. The aim of this research was to prepare the methodology for identification and assessment of the factors influencing government bond market comovements and to test this methodology in the global environment. Research methodology was based on the proposed model that includes government bond market comovements and global, fundamental and bilateral factors influencing them. Empirical research was carried out in 75 government bond markets in 2008-2016. The results showed that government bond markets significantly commoved in clusters. The influence of global factors on government bond market comovements was less strong than expected, while fundamental factors had a strong influence on the comovements: the more similar two countries were in their fundamentals, the stronger their government bond markets commoved. Only one bilateral factor – foreign direct investment – had an influence on government bond market comovements. The fact that government bond market comovements were more dependent on fundamental rather than the global factors creates more diversification possibilities for investors as well as more possibilities for governments to reduce their cost of debt by improving their fundamentals.
In this final master thesis are analyzing international business evaluation features and suggested the best method to evaluate international business. In the first part of the work are analyzed international business features, highlighting the political and currency fluctuation risks, business evaluation aspects, long established and newly developed business evaluation methods and selected the method which is best suited to evaluate international business. In the second part of the work is analyzed the feasibility of discounted cash flow method to evaluate international business and the steps of the method, highlighting the determination of cash flows, the discount rate calculation, continuous value and cash flow discounting. The focus is on discount rate calculation. In the third part of the work is done the practical business evaluation of Lithuanian company AB "Stumbras" which is working in the international alcohol sphere. In this stage is given the characterization of world, Europe and Lithuanian alcohol drinks sectors. Also there is analyzed the Lithuanian macroeconomics situation. There is performed company competitive and SWOT analyze. Also there is done company's financial analyze (vertical, horizontal and financial ratio analyze), determined the company value and factors which have the greatest impact to business value. Structure: introduction, theoretical part, discounted cash flow feasibility to evaluate the international business analyze, practical international business evaluation following AB "Stumbras" example, conclusions and suggestions, references.
In this final master thesis are analyzing international business evaluation features and suggested the best method to evaluate international business. In the first part of the work are analyzed international business features, highlighting the political and currency fluctuation risks, business evaluation aspects, long established and newly developed business evaluation methods and selected the method which is best suited to evaluate international business. In the second part of the work is analyzed the feasibility of discounted cash flow method to evaluate international business and the steps of the method, highlighting the determination of cash flows, the discount rate calculation, continuous value and cash flow discounting. The focus is on discount rate calculation. In the third part of the work is done the practical business evaluation of Lithuanian company AB "Stumbras" which is working in the international alcohol sphere. In this stage is given the characterization of world, Europe and Lithuanian alcohol drinks sectors. Also there is analyzed the Lithuanian macroeconomics situation. There is performed company competitive and SWOT analyze. Also there is done company's financial analyze (vertical, horizontal and financial ratio analyze), determined the company value and factors which have the greatest impact to business value. Structure: introduction, theoretical part, discounted cash flow feasibility to evaluate the international business analyze, practical international business evaluation following AB "Stumbras" example, conclusions and suggestions, references.
In the market environment every company is seeking to obtain and maintain the best market share. One of the mechanisms in achieving this goal is an effective internal control of the company. With growing competition, fast development and introduction of new technologies, progressing complexity of business projects, and enlarging business diversity, company management is becoming increasingly more complicated. Consequently, company internal control is becoming a more and more complicated task. A good company internal control system is one of the guarantees of effective company business. Following Lithuanian accession to the EU the economy grows fast and organisations look for new courses of action, expand the scope of their activities and thus face new types of risk. To achieve the best possible results a company must exploit all possible resources. Under such circumstances it may be difficult to acquire a competitive potential in the European Union unless there is an efficient internal control in place. Huge financial scandals of the end of the 20th century, such as Enron, WorldCom, Ahold, Parmalat, etc. made it obvious that companies without an internal control system are destined to die. Moreover, those bankruptcy cases revealed insufficient regulation of internal control. The current global crisis showed that corporate internal control failed to reveal major business risks faced by companies and to minimize such risks to an acceptable level. Likewise, corporate management systems failed to introduce urgent anti-crisis measures. The above prompts the relevance and importance of the topic. Research object: corporate internal control system under the conditions of transformation. Research objective: to analyse the changes in the corporate internal control system predetermined by the transformation period and to suggest an internal control pattern that focuses on risk management. Key scientific findings of the research 1. For the first time, analysis of different approaches towards the internal control was performed. After they were systematised, two directions of the internal control analysis were established: 1) internal control structure; 2) internal control implementation process. If the internal control is considered from a single of the above aspects, all the essential qualities fail to be revealed. Consequently the aforesaid directions have to be combined and the internal control system should be considered as a process defined by the actions of the management, which is based on provisions of ethics and social responsibility and is meant to secure the implementation of the business policy of the company and to achieve the set objectives. 2. Comparative analysis of internal control patterns was performed. 3. For the first time, legal framework regulating internal control of economic entities engaged in different business sectors in Lithuania was analysed. It was discovered that Lithuanian legislation fails to offer a systematic approach towards internal control. 4. The internal control system of Lithuanian companies was analysed. The corporate internal control was researched in 2001 and 2007 in order to determine the changes in the internal control of the companies. 5. Improvements were introduced in the internal control model for small and medium enterprises by including the following key elements: 1) control environment, 2) risk management, 3) information system and informing; 4) control factors; and 5) monitoring. 6. It was suggested that the research into the control environment should focus on the aspects of ethics and socially responsible company. 7. It was suggested that while evaluating the financial activities of a company at the risk management stage it is expedient to: 1) perform analysis of relative indices, 2) to assess the probability of company bankruptcy, 3) to forecast cash flow from the main business activities of the company. 8. It was suggested to investigate and manage the fraud risk at the risk management stage. An algorithm of auditor's actions was developed, which can be applied when circumstances indicating a possibility of errors and fraud are observed. 9. It was suggested that the analysis of the accounting system should include the following areas that are significant with respect of the internal control: selection of accounting policy and individual accounting processes. For the purpose of control, it is important to investigate both the policy of financial and management accounting. Key applicable findings of the research 1. Improved internal control system evaluation methodology for small and medium enterprises, which is designed for practical application by independent and internal auditors and company management in deciding the standing of the company control. 2. Internal control measures for individual accounting processes were systemized and presented. The urgency of analysing the accounting policy as a system of prevention control measures was substantiated. 3. After the possibilities at Lithuanian companies were analysed with the help of the recourse analysis of forecasting cash flows from main activities, a pattern for forecasting the future cash flows was suggested. 4. A system of prevention measures for organisational and technical aspects of financial accounting policy was brought forward. A special emphasis was placed on control measures in changing the accounting policy. 5. A modified production cost calculation methodology was designed for small and medium enterprises, where the production costs are accounted by using traditional cost price calculation methods, while operation costs are calculated by using elements of modern management accounting theory.
