http://dspace.epoka.edu.al/handle/1/1711 2026-04-15T20:11:04Z http://dspace.epoka.edu.al/handle/1/2279 Testing Capital Adequacy Ratio in Western Balkan Countries and It's Compliance with Basel Accord III Keqa, Flamur The capital adequacy ratio (CAR) is critical for banks' solvency and protection against unforeseen occurrences that may emerge as a result of their operations. The capital adequacy ratio is one of the metrics used to assess a bank's ability to sustain an acceptable amount of loss. Therefore, banks must provide adequate capital to comply with national and international regulatory capital requirements. The research primary objective is designed to examine the relationship between capital adequacy ratio and return on assets, liquidity assets to total assets, total assets, loan to assets ratio, and total equity to total assets as explanatory variables in Western Balkan countries. The second objective is to assess capital adequacy ratio and its compliance with Basel III requirement. The research covers the years from 2010 to 2020. The theory has neglected research of capital adequacy estimation in Western Balkan region and this research will address shortcomings enabling policy makers to better monitor capital adequacy compliance. The rationale of research consists of financial structure of Western Balkan economies which is bank-based, being economies in transition and aspiring for EU membership, no research on regional Balkan basis, bank obligations is public good, and depositors of bank have least data on capital standing and risks compare to the other stakeholders. More capitalization make bank safer therefore, capital regulation and compliance with CAR requirements became crucial tool. The econometric methods used are Panel Least Squares and Generalized Method of Moments. Generalized Method of Moments applied in research in banking field reflects new contribution to the existing literature. Novelty of research and contribution in banking is assessed taking into account the final results and empirical findings. The findings show that the banking sector in Western Balkan countries adheres to strong capital adequacy norms that surpass not only national regulatory requirements but also BIS III standard. Empirical findings indicate that Return on Assets has positive highly significant impact and Total Assets has positive impact on the capital adequacy ratio considering them as two important factors in determining capital adequacy ratio. Finally, research implications are of importance for financial regulatory authorities and banking institutions. 2023-02-01T00:00:00Z http://dspace.epoka.edu.al/handle/1/2273 Modelling Profitability and Exposure to Risk in Renewable Energy Industry Morina, Fatbardha Reputed as living in the era of fossil-fueled economies, due to their low cost, fossil fuels are deemed the main energy source. Fossil fuels emissions are the main causes of global warming and climate change, while the demand and consumption of energy is constantly increasing. On the other hand, there are limited resources to meet the ever-increasing needs. Thus, it is necessary to carry out related studies in this field, in order to find alternative sources in order to provide energy for future generations and to end the age of fossil fuels. Therefore, there is a sparking interest in renewable energy in order to reduce the negative effects on the environment and to create sustainable development. The question raised is how profitable, and what risks renewable energy companies face? The aim of this study is to identify the factors that influence the profitability of renewable energy companies and exposure to risk for the biggest energy companies that operate in European Union countries. For this purpose, three different estimation methods are used. The study uses a sample of 43 Renewable Energy companies in the European Union extracted from DataStream over the period 2004-2020. For the static model, the Ordinary Least Square (OLS) and Random Effects method to define factors that shape Renewable Energy (RE) companies’ performance is employed. In addition, due to the existence of endogeneity in OLS estimator, the results of profitability in terms of ROAA and Tobin’s q are presented by using the two-steps dynamic system GMM (Generalized Method of Moments) that deals with endogeneity issues. The findings show that market capitalization is crucial to enhance profitability. iv Leverage has a significant positive effect on firm’s profitability measured by ROAA, and Tobin’s q. Capital intensity has a negative effect on short-term profitability (ROAA). Moreover, the effect of support schemes shows that firms under the Feed-in Tariffs perform better than Tradeable Green Certificates (TGC) in terms of ROAA, while the opposite is in terms of Tobin’s q. This is the first comprehensive study that sheds light on determinants for this sector by investigating the effect of firms-specific, industry specific, macroeconomic factors and the effect of remuneration that is solely dedicated to Renewable Energy companies. Short-term and long-term profitability of RE companies is important for practitioners related to demand for energy, and to create strategies that becomes those firms profitable. A study on renewable energy companies that produce clean energy improve human development and consequently economic growth is crucial for sustainable development. 2022-12-01T00:00:00Z http://dspace.epoka.edu.al/handle/1/2272 Firm Internationalization in CEE Countries: Exploring the Main Determinants Çela, Arjona The aim of this thesis is to indentify and estimate the impact of firm-specific variables in export propensity and export performance in small and medium enterpises (SMEs) of Central and Eastern European countries, including within this group also the six Western Balkan countries. Therefore, in total this work studies 17 countries of this region. SMEs constuct the majority of the firms in the region, and they are the backbone of these economies; yet, they are the least represented in international trade. The increase of their internationalizaiton in international trade will contribute to the economic growth and development of the region. However, compared to large firms, they lack resources and capabilities and face many barriers that hinder their internationalization. This work indentifies the importance of SMEs in the studied economies and explores the main factors, such as innovaiton capacity, foreign ownership, networks, imports, and so on in export propensity and export performance. Previous studies conducted in this region investigate specific countries. On the contrary, this work conducts a compehensive study, focusing on the whole region and uses the latest survey data of Business Environment and Enterprise Performance Survey of World Bank before the COVID-19 pandemic. The data used for the empirical analysis are cross-sectional data of 2003, 2009 and 2019. The empirical analysis uses an OLS, probit and tobit model and the factor analysis. The probit model is used to measure the impact of firm-specific factors on the probability of SMEs to become exporters. The tobit model measures the impact of these factors on the export performance of SMEs that are already operating in foreign markets through exporting. The conclusion derived from the implemented models demonstrate that firm-characteristics such as firm size, foreign ownership, and labor iv productivity are significant indicators that increase the probability of a certain SME to become an exporting firm/entity the innovation capacity of SMEs creates competitive advantages for SMEs and makes them more likely to enter foreign markets through exporting or increase their exporting performance. Indicators of labor capital such as average labor cost or industry experience of top managers also have a significant impact on export propensity and export performance. Imports are another form of internationalization, and they create opportunities for SMEs to network and gain knowledge about foreign markets. This increases their probability to become exporting SMEs. Networks and collaborations at national and international level compensate for the lack of resources and capabilities in SMEs and enable them to gather information regarding foreign markets. This reduces uncertainty and increases the probability for an SME to become an exporting firm/entity; it also increases their exporting performance; in case they are already operating in foreign markets. These findings fill the gap and extend the literature in relation to this specific field of CEE countries. They contribute, helping managers and policy makers in realizing on the importance of SME internationalization and identifying the factors that make them more likely to export or increase their exporting performance. 2022-12-01T00:00:00Z