Analysis of the macroeconomic factors influence on the performance of financial markets

 Authors: Andreea Antoneac (Lungu), Octavian Iordan
 Vol. 6 • No. 11 • November 2021

Abstract

This paper represents empirical research of the theory according to which there is an influence between macroeconomic factors and the financial performance of different states, depending on the success of their companies in the stock market. Similar results have been observed in research by various economists over the past decades. The most relevant companies are included in the group stock market indicators that have major effects on national, regional and global economies. Thus, we verified the effects of inflation, unemployment and GDP (Gross Domestic Product) per capita on their value variation by multiple linear regression, by checking the direction of the link between factors and the possibility of its existence. We analysed the evolution of macroeconomic factors over time and how they could influence stock market transactions and the value of their quotations. Considering the differences between the levels of development of the categories of countries according to the human development index, we performed a comparative analysis on developed and emerging states, a total of 6 states equally distributed between the two categories.

 

Keywords: financial performance of states; the performance of companies in the stock market; the level of development of the states; human development index; stock indices.

JEL Classification: D53; E44; G15; N20; O16.

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