THE VALUE OF FOOD SECTOR ON CROATIAN CAPITAL MARKET IF THE AGROKOR CRISIS DID NOT HAPPEN: SYNTHETIC CONTROL METHOD APPROACH

Tihana Škrinjarić

Abstract


This paper explores the effects of the economic-political crisis of the biggest company-concern in Croatia,
Agrokor, on the value of the food sector stock index on Zagreb Stock Exchange. Synthetic Control Methodology
was applied on sector monthly data for the period February 2013 – December 2017. The results indicate that
the controversies around Agrokor potentially had negative effects on the value of food industry stocks on the
Croatian market. This can be interpreted that investors did not anticipate some events regarding the Agrokor
concern and holding of certain stocks has fore surely affected the value of some portfolios.


Keywords


Agrokor crisis; stock market; synthetic control methodology; stock index

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