Relation between the macroeconomic variables and the stock return in companies of the finance and insurance sector from Latin American stock market

Abstract

This paper aims to verify the relation between the macroeconomic indicators with the Stock Return (SR) in public companies of the finance and insurance sector from Latin America. Data were analyzed from 2010 to 2017 through dynamic panel analysis via Generalized Method of Moments (GMM) by two approaches: Arellano-Bond e System. Results pointed that the Stock Return showed a positive relation with Exchange Rate, but a negative relation with Gross Domestic Product. It is concluded that macroeconomic variables interfere with the shareholder return of companies in the Finance and Insurance sector.