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