Journal of Contemporary Issues in Business and Government

Abstract

Purpose of this research is to unearth the effect of significant political
events on stock market performance and volatility of Pakistan during the
period 2013 to 2018.Event study methodology is employed to investigate
the stock market behaviour in response to major political events i.e. the
China Pakistan Economic Corridor CPEC (MOU), Prime Minister Nawaz
Sharif disqualification, and the Elections held on 25th July 2018,in terms
of four indexes (i.e. KSE 100 index, KSE all share indexes, KSE-30
index and KMI 30 index).Findings demonstrated that political events
influence the stock market according to their nature.The contribution of
this study is two folds.