IMPACT INDICATORS FOR STOCK MARKETS RETURN

Th e paper examines the infl uence of impact indicators on stock market returns. Th e authors analyse various theoretical and empirical studies in order to form a set of impact criteria for stock market selection. Th e diff erent examinations aimed to identify the co-integrating relationship between stock market return and such impact indicators as money supply, exchange rate, short and long-term interest rates and others. It is oft en observed that stock prices tend to fl uctuate with economic indicators that have positive and negative eff ects on stock market returns. A detailed analysis of the selected topic has shown that there is no unifi ed or general method for the selection of the mentioned criteria; therefore, the authors propose a set of criteria that should be used for stock market selection in order to generate sustainable market return in the long term.