THE ASSESSMENT OF BALTIC STOCK MARKET FROM PERSPECTIVE OF TOTAL SHAREHOLDER RETURN RATIO

Abstract

Lithuanian stock market still lacks of attention from big investments despite its merger with Latvian and Estonian stock markets. Now all three markets are part of NASDAQ stock exchange group and making new steps to be more attractive. And the main attraction for investors is growing value of their portfolios. The main article’s purpose is estimation of change in value of Baltic and Nordic stock markets in past 10 years from 2012 till 2022 by using Total Shareholder Return calculations. The results show positive growth of portfolios in all observed countries per last 10 years with much better results in Nordic market. Such growth was assured by cash flows received from dividends and stock prices on ex-dividend day of 2022. One-year Total Shareholder Return ratio showed negative impact of the war in Ukraine started on February 2022. For the weak efficiency in Baltic stock market, negative effect was smaller than in Nordic stock market. The article presents estimations on these negative and positive effects.