The reaction of stock market indices of the Sarajevo Stock Exchange - (SASX-30) and the Banja Luka Stock Exchange - (BIRS) to changes in macroeconomic variables
This study aims to identify the impact of macroeconomic and market variables on the Bosnian and Herzegovinian stock market. Two stock market indices on the capital market of Bosnia and Herzegovina are considered: the SASX-30 and BIRS. At the same time, macroeconomic and market variables include turnover (TRN), market capitalization (MC), exports (EXP), imports (IMP), gross domestic product (GDP), consumer price index (CPI), and foreign direct investment (FDI). The study adopts panel regression analysis for the period from 2013 to 2022. The results of the panel regression analysis showed that export and import values have the strongest influence on the movement of returns for the SASX-30 and BIRS stock market indices in the capital market of Bosnia and Herzegovina. On the other hand, the variables achieved the lowest significance: turnover, market capitalization, foreign direct investments, and consumer price index.