UTJECAJ RAZINE OBJAVA EMITENATA NA TRŽIŠTU KAPITALA U FEDERECIJI BOSNE I HERCEGOVINE NA UKUPNU RENTABILNOST DIONICE I PRINOS DIONICE
THE EFFECTS OF THE LEVEL OF DISCLOSURES ON EARNINGS /PRICE RATIO AND STOCK YIELD ON THE CAPITAL MARKET IN THE FEDERATION OF BOSNIA AND HERZEGOVINA

Summary/Abstract: Information are one of the basic resources for business, and without them, it is not possible to make quality and timely business decisions. With the development of financial markets and the growing number of information stakeholders, the requirements for disclosures are continuously increasing. The way on which issuers communicate with potential investors and all other stakeholders are publicly available disclosures, whether they are on mandatory or voluntary base. This paper examines the disclosures on the capital market in the Federation of BiH, classified in the Segment 1 (ST1) of the Sarajevo Stock Exchange (SASE), in the period from 2013 to 2018, and whether the level of disclosures affects the earnings/ price ratio and price yield of the issuers. The research established that issuers classified in the ST1 partially meet the legally prescribed obligations in publishing information. They publish only the main set of financial statements, while the external auditor’s report, which is the control mechanism of financial statements, was not published by a significant number of issuers. The scope of publishing voluntary information is not on a satisfactory level due to the still relatively undeveloped capital market in the F BiH compared to more developed countries and the fact that Bosnia and Herzegovina is not a member of the European Union and has not yet harmonized legal requirements with the EU regulatory framework for corporate reporting. The performed regression analysis did not confirm the impact of the level of disclosures on the earnings / price ratio and price yield of the issuers.

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