ARTICLE

THE IMPACT OF POLITICAL ACTIVITIES ON PSX THE EVIDENCE FROM PAKISTAN

  1. HOME
  2. ARTICLE

06 Pages : 55-66

http://dx.doi.org/10.31703/ger.2018(III-II).06      10.31703/ger.2018(III-II).06      Published : Dec 2018

The Impact of Political Activities on PSX: The Evidence from Pakistan

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.

    PSX-100 index, T-statistics, Political Events, Event Study Methodology, Moving Average

    (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.
Fulltext PDF

References

  • Altin, H. (2012),
  • Bittlingmayer, G. (1998). Output, stock volatility, and political uncertainty in a natural experiment: Germany, 1880-1940. The Journal of Finance, 53(6), 2243-2257
  • Blomberg, S. B., Hess, G. D., & Orphanides, A. (2004). The macroeconomic consequences of terrorism. Journal of monetary economics, 51(5), 1007-1032.
  • Brown, S. J., & Warner, J. B. (1985). Using daily stock returns: The case of event studies. Journal of financial economics, 14(1), 3-31.
  • Fama, E. F. (1965). Random walks in stock market prices. Financial analysts journal, 55- 59.
  • Hassan, S. A., Mahmood, A., Ahmed, A., & Abbas, S. F. (2014). Impact of terrorism on Karachi stock exchange: Pakistan. Journal of Basic and Applied Scientific Research, 4(7), 182-191.
  • Mahmood, S., Irfan, M., Iqbal, S., Kamran, M., & Ijaz, A. (2014). Impact of political events on stock market: Evidence from Pakistan. Journal of Asian Business Strategy, 4(12), 163-174.
  • Manzoor, H. (2013). Impact of Pak-US relationship news on the KSE-100 Index. Journal of Business Management and Accounts, 2(24-29).
  • Murtaza, H., & Ali, R. Impact of Major Political Events on Stock Market Returns of Pakistan.
  • Nguthi, P. N. (2013). The effect of political news on stock market returns in Kenya: The case of March 2013 general elections. Masters research paper, University of Nairobi.
  • Raza, M. W., & Mohsin, H. M. (2011). Financial liberalization and macroeconomic performance, empirical evidence from selected Asian countries.
  • Sajid Nazir, M., Younus, H., Kaleem, A., & Anwar, Z. (2014). Impact of political events on stock market returns: Empirical evidence from Pakistan. Journal of Economic and Administrative Sciences, 30(1), 60 78.
  • Schwert, G. W. (1989). Why does stock market volatility change over time?. The journal of finance, 44(5), 1115-1153.
  • Suleman, M. T. (2012). Stock market reaction to good and bad political news. Asian Journal of Finance & Accounting, 4(1), 299-312
  • Taimur, M., & Khan, S. (2013). Impact of Political and Catastrophic Events on Stock Returns.
  • Zach, T. (2003). Political events and the stock market: Evidence from Israel.

Cite this article

APA

CHICAGO

    CHICAGO : Rahman, Sami Ur, Ihtesham Khan, and Muhammad Faizan Malik. 2018. "The Impact of Political Activities on PSX: The Evidence from Pakistan." Global Economics Review, III (II): 55-66 doi: 10.31703/ger.2018(III-II).06

HARVARD

    HARVARD : RAHMAN, S. U., KHAN, I. & MALIK, M. F. 2018. The Impact of Political Activities on PSX: The Evidence from Pakistan. Global Economics Review, III, 55-66.

MHRA

    MHRA : Rahman, Sami Ur, Ihtesham Khan, and Muhammad Faizan Malik. 2018. "The Impact of Political Activities on PSX: The Evidence from Pakistan." Global Economics Review, III: 55-66

MLA

    MLA : Rahman, Sami Ur, Ihtesham Khan, and Muhammad Faizan Malik. "The Impact of Political Activities on PSX: The Evidence from Pakistan." Global Economics Review, III.II (2018): 55-66 Print.

OXFORD

    OXFORD : Rahman, Sami Ur, Khan, Ihtesham, and Malik, Muhammad Faizan (2018), "The Impact of Political Activities on PSX: The Evidence from Pakistan", Global Economics Review, III (II), 55-66

TURABIAN

    TURABIAN : Rahman, Sami Ur, Ihtesham Khan, and Muhammad Faizan Malik. "The Impact of Political Activities on PSX: The Evidence from Pakistan." Global Economics Review III, no. II (2018): 55-66. https://doi.org/10.31703/ger.2018(III-II).06