Munich Personal RePEc Archive Impact of Political Uncertainty on Pakistan Stock Exchange (1990-1999): An Event Study Approach Sulehri, Fiaz Ahmad and Ali, Amjad Lahore School of Accountancy and Finance, University of Lahore, Pakistan., Lahore School of Accountancy and Finance, University of Lahore, Pakistan.; University Paris 1 Pantheon Sorbonne (France)/ European School of Administration and Management (ESAM), France. 2020 Online at https://mpra.ub.uni-muenchen.de/104623/ MPRA Paper No. 104623, posted 13 Dec 2020 20:56 UTC Impact of Political Uncertainty on Pakistan Stock Exchange (1990-1999): An Event Study Approach Fiaz Ahmad Sulehri1 Lahore School of Accountancy and Finance, University of Lahore, Pakistan. Amjad Ali2 Lahore School of Accountancy and Finance, University of Lahore, Pakistan. University Paris 1 Pantheon Sorbonne (France)/ European School of Administration and Management (ESAM), France. Email:
[email protected] Abstract Pakistan is struggling against many problems; out of which political instability and terrorism are crucial problems. These issues hindered the economic growth of the country as well as the confidence of investors. This study has investigated the impact of political events on Pakistan Stock Exchange. This paper uses a standard event study methodology. Data relating to the stock market index has been collected from the website of Pakistan Stock Exchange and relating to political events has been collected from the newspapers of Business Recorder and DAWN. A total of 18 political events was considered in the study out of which 08 events were coded as positive and other 10 were deemed negative. The first day abnormal return, a five-day cumulative abnormal return and ten day cumulative return was calculated for all of the events.