Abstract
The aim of this research study is to
find the association between political
events in Pakistan and Pakistans stock exchange. The
study considered 10 most big political events in Pakistan
in the duration of 2012 to 2017. To calculate the results,
the study used moving average method for calculating
expected and abnormal returns. Further, t-statistics is
used to explore the relationship between political events
and behavior of PSX (100). The study has explored in
results that political events, on which investor believes
some change in Government policies do have impact on
PSX. Investors respond positively when government
organizations look strong and free from political
pressure. The study recommended that government
should make strong their organization, rather than alter
government policies frequently.
Authors
1-Sami Ur Rahman PhD Scholar, Abdul Wali Khan University Mardan, Mardan, KP, Pakistan.2-Ihtesham Khan Assistant Professor,Department of Management Sciences, Abdul Wali Khan University Mardan, Mardan, KP, Pakistan.3-Muhammad Faizan Malik Assistant Professor,Department of Management Sciences,Abdul Wali Khan University Mardan, Mardan, KP, Pakistan.
Keywords
PSX-100 index, T-statistics, Political Events, Event Study Methodology, Moving Average
DOI Number
10.31703/ger.2018(III-II).06
Page Nos
55-66
Volume
III
Issue
II