An Empirical Analysis of the Impact of Global Financial Crisis on Economic Activity in North Macedonia

Global financial crisis caused major economic disruptions and slow down economic activity in North Macedonian economy. The purpose of this paper is to examine the impact of Global financial crisis on economic activity in North Macedonia through analyzing fluctuations of major macroeconomic indicators of the economy. In this regard, it analyzes the trends of macroeconomic indicators that reflect the development and macroeconomic balances of those economies, such as GDP, unemployment, foreign direct investment, trade openness, and the level of public debt, in order to identify factors that have contributed in their fluctuations. The research methodology consists of regression model of time series, OLS and VECM models. The results suggest that Global financial crisis had a negative impact on the economic growth, because the coefficient has a negative sign and is statistically significant. Keywords: global financial crisis, economic effects, OLS, VECM DOI: 10.7176/EJBM/14-23-01 Publication date: December 31st 202

The Change Of Share Prices Of Companies From Different Sectors In The Period Of The COVID-19 Pandemic

 The Macedonian stock market was not unaffected by the global level crisis that was present as a result of the COVID-19 pandemic. The share prices of the companies that are listed on the stock exchange started to change the value but not in the same direction because all companies from different sectors were not affected in the same way by the COVID-19 pandemic.The institutional capital market index MBI-10 in 2020 as a result of the COVID-19 pandemic had a decrease of 22.43% in March of 2020 and this decrease continued until the beginning of 2021 when the increasing trend began and at the annual level increased to  30.8%. If we analyze it on the basis of the component structure, the prices of all shares that are components of the stock market index have increased annually. From a structural point of view, five of the ten companies that are the elements of MBI-10 are commercial banks, while the other five are from other sectors, which shows that we have a high level of sectoral concentration.In the Macedonian Stock Exchange, 94 companies are listed, the paper will analyze the impact of the COVID-19 pandemic on the changes in the prices of their shares in the period of the pandemic and post-pandemic, as well as whether all sectors were affected in the same way. Based on the analysis of the financial statements of companies listed on the Stock Exchange, even though there have been difficult years, some companies have managed to achieve high profits in 2020 and 2021. Keywords: share, stock market, COVID-19, MBI 10, capital market

Changes of the interest rates and their impact in the capital structures of the companies

There are two main sources of finances of companies: the equity and the debt. But what will be the optimal proportion between the debt and the equity, it still remains problematic. The proportion between the debt and the equity is known as capital structure, which is a combination of long-term loans, ordinary shares and preferred stock of the company. The optimal capital structure is the balance of the risk and the return, in which case is achieved the maximizing of the shares. The debt contains the long-term loans or obligation, while the capital contains the shares capital, shares premium, reserves and retained earnings. So, a company can finance its activities through debts and/or with equity. In this paper we will analyze the capital structures of a few companies in the Republic of Macedonia which are listed in the stock exchange of Macedonia and the changing of the structure depending in the interest rates, and the factors which have an impact in the capital structure

The change of Share Prices of Companies from Different Sectors in the Period of the COVID-19 Pandemic

The Macedonian stock market was not unaffected by the global level crisis that was present as a result of the COVID-19 pandemic. The share prices of the companies that are listed on the stock exchange started to change the value but not in the same direction, because all companies from different sectors were not affected in the same way by the COVID 19 pandemic. The institutional capital market index MBI-10 in 2020 as a result of the COVID 19 pandemic had a decrease of 22.43% in March of 2020 and this decrease continued until the beginning of 2021 when the increase trend began and at the annual level increased to 30.8%. If we analyze it on the basis of the component structure, the prices of all shares that are components of the stock market index have increased annually. From a structural point of view, five of the ten companies that are the elements of MBI-10 are commercial banks, while the other five are from other sectors, which shows that we have a high level of sectoral concentration. In the Macedonian Stock Exchange, 94 companies are listed, the paper will analyze the impact of the COVID-19 pandemic on the changes in the prices of their shares in the period of the pandemic and post-pandemic, as well as whether all sectors were affected in the same way. Based on the analysis of the financial statements of companies listed on the Stock Exchange, even though there have been difficult years, some companies have managed to achieve high profits in 2020 and 2021