| Abstract [eng] |
Thesis consists of: 64 pages, 32 tables, 3 pictures, 58 references. The main objective of the thesis - is to analyse and compare the financial indicators affecting share prices and the macroeconomic factors influencing those indicators in Europe and Asia, and after applying the results of analysis, to assess the influence of financial indicators on the share prices of the companies listed on the Nasdaq Baltic stock exchange. The thesis consists of three main parts. The first part is a theoretical analysis of the relationship of financial indicators with stock prices considering the context of the macro-economic factors, during which it was found that in order to accurately assess the factors affecting stock prices in the Baltic stock market, it is necessary to rely on the fundamental theory of stock valuation. As a result, the financial indicators which have strongest relationship with and effect on the share prices in Europe and Asia were identified and consist of capital and assets returns, net profitability, earnings per share, liquidity indicators, financial leverage, book value of shares and net cash flow per share. It was found that these indicators have a strong correlation and regression relationship with the following macroeconomic factors: GDP, inflation, consumer price index, export, money supply, gas and oil prices, and exchange rate changes. The second part is dedicated to determining the methodology for further research related to the influence of financial indicators on the share price in the Baltic region, considering its macroeconomic environment. By comparing different methods used by other authors in Asian and European scientific articles, it was decided that the least complex and most suitable method for research is linear regression analysis. As a secondary method, Pearson correlation analysis was performed to verify the relationships between the variables. The scope of analysis chosen is a 21 non-financial company listed on the Nasdaq Baltic stock exchange and their publicly available financial statements for the year 2015-2024. This data was used to calculate financial indicators and assess the impact caused by them on stock prices in the Baltic stock market. To measure the influence of macroeconomic factors influencing those financial indicators data from publicly available data sources such as European Statistical Office, World Bank, and International Monetary Fund was collected. Research results disclosed in the third part of the thesis showed that stock prices of the companies listed in the Baltic stock exchange are mostly positively impacted by earnings per share and cash ratio. These two financial indicators were positively affected by inflation, consumer price index, export, and money supply, while gas price had a negative impact on financial indicators. Results regarding earnings per share and cash ration align with results received from research in Asian and European stock markets. Results about inflation and consumer price index were the opposite when comparing to Asian and European stock market results, however impact regarding export, money supply and gas prices aligns. Foreign exchange currency relationship with financial indicators disclosed in scientific articles of Asian stock market analysis, does not have significant impact on the stock price in the Nasdaq Baltic stock exchange. In conclusions and recommendatios part, summary comprising literature analysis and results of research performed is disclosed, suggestions about possible improvements on similar future research are made. |
