Investor Relations on the Western Balkan's Stock Market: A Comparative Study

Abstract

In this work we analyses IR development of Serbian and Croatian companies listed on stock markets which are within indices Belex 15, Belex Line (Belgrade Stock Exchange) and Crobex (Zagreb Stock Exchange). Our results indicate that IR techniques have diffused from countries following the Anglo-American economic model to The Western Balkan's countries. Serbia and Croatia have adopted laws and regulations in order to facilitate the establishment of stock markets. These new regulatory regimes have largely been influenced by the EU especially for countries gaining or planning to gain membership. The emergence of IR practices and IR departments in the Serbia and Croatia contributes to the development of corporate governance structures and market transparency. This exploratory study suggests that further research using a larger sample to enable statistical testing of disclosure theories relevant to IR is desirable. There is also a possibility for more qualitative case study or research to provide further insight into the topic. Potential also exists for studies of the diffusion of IR in the other Western Balkan's countries (Montenegro, Macedonia, Bosnia and Hertzegovina, Slovenia, Bulgaria etc.) and the newly emerging economies of BRICS countries (Brazil, India, China and South Africa).