| Abstract [eng] |
The main goal of this research is to analyze the firm's investment behavior on business enterprises and investment behavior caused by different economic and financial aspects. The paper consists of the analysis of related literature, research methods, data analysis, fixed effect regression analysis, the comparison between Lithuania, Latvia and Estonia, and conclusions. This panel's yearly data is taken from Nasdaq Vilnius Stock Exchange. The data contains 24 firms in Lithuania, 18 in Estonia and 10 in Latvia. The data contains the investment of the firm, the firm's debt, taxes, liquidity rating, the firm's size, stock price, and profit. The fixed effect regression was used to analyze the effects of each variable on investment behavior. The results show that if the firm has higher taxes, the investment increases in Lithuanian firms. The bigger profit and stock price in Lithuanian firms increase the investment, but the company's debt has no impact on it. The investment and firm size research in Lithuanian firms showed that the firm with a smaller number of workers has bigger investment spending. The investment and liquidity ratio analysis showed that firms with lower liquidity ratios have bigger investment spending. The comparison between Lithuania, Latvia and Estonia showed that the taxes and investment correlation is positive in Lithuania and Estonia, whereas if the firm has higher taxes in Latvia, it will have lower investment. This thesis result indicates that if the firm has higher debt in Latvia, the investment will be bigger, but Estonia is entirely different. It shows that higher firm debt lowers investment. The profit and investment correlation shows that if the profit increases, the investment increases in all three Baltic countries. There the size effect has a negative impact on investment in Lithuania, a positive impact in Latvia and no impact at all in Estonia. The investment and liquidity ratio analysis showed that firms with lower liquidity ratios have a bigger investment in Lithuania and Estonia, whereas, in Latvia, the firms with lower liquidity ratings have a bigger investment. |
