1,721,005 research outputs found
Factors Influencing Private Customers′ Trust in Internet Banking: Case of Latvia
No full textBanking sector has developed and extended the usage of online services in the past decade. In fact, nowadays, Internet-based banking services dominate over other historically provided alternatives. This article discusses private clients′ trust in Internet banking in Latvia. The model of trust in Internet banking was developed based on four factors, distinguished in the scientific literature. They are provided information, bank’s characteristics, ebanking system and website of a bank. Hence, the goal of the research is to measure the impact of distinguished factors on trust in Internet banking. In order to determine how these attributes affect private customers′ trust, correlation and regression analysis were applied. The results showed that the most vital factor affecting private clients’ trust in Internet banking is e-banking system. What is more, it was found that provided information is a statistically insignificant factor and, hence, it was removed from the model. Respondents, being private customers, limit the breadth of study, thus the results do not reflect companies’ trust in Internet banking
Editorial to topical issue "Business and management"
No full textA brief overview on the 10th International Scientific Conference "Business and Management" organised by the Faculty of Business Management of Vilnius Gediminas Technical University (Vilnius, Lithuania) on May 3-4, 2018
Small and medium-sized enterprises’ satisfaction with banks’ business-oriented services
No full textPurpose – the purpose of this paper is to investigate the impact of quality, variety, accessibility and price of banking services on small and medium-sized companies’ satisfaction with banks’ business-oriented services. This paper presents a regression equation of SMEs satisfaction with banks’ services, indicating the weight of each statistically significant factor in the overall SMEs satisfaction with the commercial banks’ services for business. Design/methodology/approach – an empirical study, investigating the influence of quality, variety, accessibility and price of banking services on SMEs’ satisfaction with business-oriented services, was conducted. A sample of 405 small and medium-sized companies’ employees was used for the survey. Findings – the results of the research show that price, accessibility and quality of banking services have a direct positive influence on the satisfaction of SMEs with commercial banks’ business-oriented services. However, the variety of banking services is not a statistically significant element and did not have an impact on the SMEs’ satisfaction with banks’ services for business. Moreover, it was found that the price and accessibility of banking services have a positive relationship with the quality of banking services. Research limitations/implications – this research was conducted in small and medium-sized companies’ sector and the results of the survey cannot be used to interpret the satisfaction of other business sectors with banking services. Practical implications – the findings suggest that banks can create SMEs’ satisfaction with business-oriented services through improving accessibility, quality and price of banking services in the way that best meets customers’ needs. Originality/Value – satisfaction with the banking services concerning SMEs is an important factor influencing the success of commercial banking activities. The present study provides useful information on the factors influencing SMEs’ satisfaction with banking business-oriented services
Evaluation of personal clients' trust and its impact on stability of commercial banks
No full textThe dissertation examined the problem raised – it was determined what factors are the most important in forming the personal consumers’ trust in commercial banks and the impact of personal consumers’ trust’s effect on the stability of commercial banks. The first part of the dissertation reviewed the scientific literature, analysed the theoretical concepts of trust in commercial banks; examined the interoperation of banks’ stability and trust. Summarizing the results of the research the thesis proposed upplementing bank stability describing model CAMELS with consumers’ trust factor and use CAMELS + T model. The second part of the dissertation introduced the theoretical model of commercial banks’ personal consumers’ trust and its effect on the stability of the bank as well as proposed the model evaluation methodology. The third part of the thesis conducted the coherent assessment of trust formation and its impact on banks’ stability, and provided the results of banks services’ consumer surveys and expert evaluations. The dissertation is finished with conclusions and further research guidelines, references and appendices.Disertacijoje išnagrinėta iškelta tyrimo problema – nustatyta, kokie veiksniai yra svarbiausi formuojant individualių vartotojų pasitikėjimą komerciniais bankais ir kokią įtaką individualių vartotojų pasitikėjimas daro įtaką komercinių bankų stabilumui. Pirmojoje disertacijos dalyje atlikta mokslinės literatūros apžvalga, analizuotos pasitikėjimo komerciniais bankais teorinės koncepcijos; nagrinėtos bankų stabilumo ir pasitikėjimo sąsajos. Apibendrinus atliktų tyrimų rezultatus darbe pasiūlyta bankų stabilumą aprašantį CAMELS modelį papildyti vartotojų pasitikėjimo veiksniu ir naudoti CAMELS+T modelį. Antrojoje disertacijos
dalyje pateiktas komercinių bankų paslaugų individualių vartotojų pasitikėjimo ir jo įtakos bankų stabilumui teorinis modelis bei pateikta modelio vertinimo metodika. Trečiojoje disertacijos dalyje atliktas kompleksinis pasitikėjimo formavimo ir jo įtakos bankų stabilumui vertinimas, pateikti banko paslaugų vartotojų apklausos ir ekspertinių vertinimų rezultatai. Disertaciją užbaigia išvados ir tolesnių tyrimų kryptys, literatūros sąrašas, priedai
Measuring efficiency of commercial banks and other deposit institutions: DEA-Malmquist approach
No full textResearch background: Commercial banks play a vital role in the global financial system and are critical components of it. Hence, the efficient performance of commercial banks could lead to more robust economic stability, enhanced financial resilience, and sustainable growth. The pandemic/post-pandemic period forces the expansion of digitalisation in the economy, including the banking sector. The Malmquist Index helps to assess productivity change. This research fills the gap in measuring the dynamics of efficiency and productivity change during the pandemic/post-pandemic period in a small open economy.
Purpose of the article: The current study aims to assess and compare the dynamics of banking sector efficiency and productivity change in the pandemic/post-pandemic period.
Methods: Data Envelopment Analysis (DEA) was used in the current research in order to measure the efficiency of deposit institutions operating in Lithuania. The study employed the input-oriented Constant Returns to Scale (CRS) model in order to assess how efficiently the banks utilise the inputs to achieve the outputs. The calculations of the efficiency scores were complemented using the Malmquist Index, which evaluates the productivity change over time using Total Factor Productivity Change (TFPCH), Technical Efficiency Change (TECH), and Technological Change (TCCH).
Findings & value added: To the best of the authors’ knowledge, this is the first study to explore the banks’ efficiency and productivity change using DEA and MI for the Lithuanian banking sector. The research results have revealed varying efficiency among the Lithuanian commercial banks and other deposit institutions within the four investigated models. Depending on the model, some studied deposit institutions reached the highest scores, while others showed lower efficiency. However, the results of the Malmquist Index have showed overall productivity growth across all the models, underlining positive technological advancements despite challenges like the COVID-19 pandemic, i.e. the productivity change showed a positive dynamic over the analysed period. The present research provides valuable insights and contributes to efficiency-related knowledge, highlighting trends in productivity for strategic decision-making and policy formulation based on the case of deposit institutions operating in Lithuania. The results are valuable and could be practically implied by other EU banks operating in small open economies by adopting the practices of the banks that were considered efficient and showed positive productivity change. In other words, high-performing Lithuanian banks could be treated as a benchmark and set as a model for less efficient banks operating in other EU countries
Circular economy practices as a tool for sustainable development in the context of renewable energy: What are the opportunities for the EU?
No full textResearch background: In order to tackle climate change and ensure Paris agreements are met, countries are forced to look for alternative ways of producing, consuming, and wasting and adopt a circular economy. Reduction of greenhouse gas emissions becomes one of the key elements. The demand for electricity is increasing, and most greenhouse gas emissions derive from the energy sector. Because of that, it is crucial to ensure the transition from fossil fuels to renewable energy. Renewable energy, as a part of the circular economy, also contributes to sustainable development. Only the efficient implementation of circular economy and renewable energy practices can ensure that sustainable development goals are achieved.
Purpose of the article: The study aims at determining the efficiency of European Union countries implementing circular economy practices through renewable energy to attain SDGs. The study focuses on the significance of renewable energy as a tool for the circular economy to achieve sustainable development and highlights the progress achieved in SDG through renewable energy in the EU.
Methods: For efficiency assessment of the circular economy represented by the renewable energy indicators, data envelopment analysis (DEA) was performed.
Findings & value added: This study presents a relation analysis of the circular economy and renewable energy and the importance of efficiency in achieving SDGs through a circular economy. The study helps to understand the circular economy represented by renewable energy and how it transforms into sustainable development and contributes to necessary actions needed for countries to improve. Based on the results, Sweden, Luxembourg, Ireland, Latvia, Estonia, Malta, the Netherlands and Bulgaria are considered the most efficient countries, while Austria is the least efficient. Unused solar and wind power potential can slow down sustainable development; however, EU programs and renewable energy strategies help countries move towards clean energy and ensure efficient implementation of sustainable development goals
Evaluation of circular economy indicators seeking sustainable development goals
Full text linkTo tackle climate change, resource scarcity, and environmental degradation, the circular economy (CE) is gaining popularity as a key tool for promoting sustainability by harmonising societal, economic, and environmental needs and contributing to global sustainable development goals. This research aims at determining which circular economy indicators most significantly impact the sustainable development goals (SDGs) in European Union (EU) countries. Panel regression analysis was used to determine which circular economy indicators most significantly impact the Sustainable development goals index across the EU countries. In this study, five separate panel regression models were developed, each representing a pillar of the European Union’s CE framework: production and consumption, waste management, secondary raw materials, competitiveness and innovation, global sustainability and resilience. Based on the results, CE indicators have varying effects: material and consumption footprint, generation of municipal and packaging waste per capita, the recycling rate of municipal waste, circular material use rate, trade in recyclable raw materials as well as persons employed in the circular economy sector and material import dependency are associated with the improvement of the SDG index, while recycling rate of WEEE (waste of electrical and electronic equipment) and greenhouse gas emissions are associated with the decrease of the SDG index. These outcomes are often linked to economic growth and the expansion of green technologies, which are essential for a more sustainable future. This research explains the linkage between the circular economy and its contribution to achieving the SDGs in EU countries. It enables policymakers, businesses, and other stakeholders to recognise the significance of CE practices in attaining sustainable development. The research outcomes can guide the development of CE policies, prioritising impactful areas for countries dedicated to achieving sustainable development through CE practices
Sustainable metamorphosis: examining sustainability transformation into value of financial institutions
Full text linkThe relevance of sustainable development in the financial institution and its value is significant in today’s financial landscape. This research aims to evaluate the efficiency of converting sustainable development outcomes, quantified through ESG, into a financial institution’s valuation, measured by the P/E ratio. In order to reach the aim, the DEA method was applied. The results reveal that only one financial institution has an efficiency score of 1, signifying a notable efficiency level. Most financial institutions in the dataset possess efficiency scores (represented by theta) below 0.1, indicating a relative inefficiency in converting their E, S, and G scores into P/E ratios. The results reveal that high E, S, and G scores do not result in higher P/E ratios. It might be advisable to diversify investments across different financial institutions with diverse ESG profiles to mitigate risk and optimise returns. These potential research perspectives offer opportunities for a more profound understanding of the connection between ESG factors and the valuation of financial institutions. They allow for an examination of the quality and transparency of ESG reporting, considering the specific internal factors relevant to international financial institutions, as ESG continues to gain recognition as an integral component of a company’s intangible assets.
First published online 04 January 202
CAMELS+T approach for banks’ soundness assessment: evidence from the Baltics
No full textThe findings of the research contribute towards commercial banks’ soundness assessment. The current study focuses on the importance of customers’ trust for banks’ soundness and the expanded CAMELS+T model was suggested where “T” stands for customer trust. For testing CAMELS+T model expert evaluation method was used Pairwise comparison method was used for factors’ ranking. The outcomes of the experts’ pairwise comparison were generated using analytic hierarchy process ( AHP) based on classical and balanced scales and fuzzy analytic hierarchy process ( FAHP) technique. The model was tested in the Baltic countries. Three forms of banking were analysed: traditional banking, internet banking and mobile banking in the current research. The results of the study showed that customer trust is one of the vital factors positively influencing the soundness of commercial banks. Therefore, the results contribute to the studies relating bank performance, as it confirms that trust is a powerful tool in commercial banks’ soundness building process. The results of the research are useful for commercial banks’ soundness’ assessment as soundness is considered the factor that is necessary not only for customer retention but also for customer acquisition. The findings have implications on the development of the strategy and the policy of commercial banks. Moreover, the results are valuable for investors as the soundness of commercial bank is the criterion investors should take into consideration while choosing a bank they are going to work with
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