Selected paper

Bashir, Usman Inam-ul-Haq , Gillani, Syed Muhammmad Ahmad Hassan
Influence of Terrorist Activities on Financial Markets: Evidence from KSE
Year: 2013
Volume: 4
Issue: 2
Pages: 5-13
JEL: G14, G12, O16
DOI: 10.5817/FAI2013-2-1

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Keywords:
terrorism, KSE, event study, Pakistan, GARCH

Abstract:
This paper investigates the influence of terrorist activities taking place in Pakistan on the KSE (Karachi Stock Exchange) for the period of 01/2005 to 12/2010 using the GARCH & GARCH- EVT to identify the relationship between these two variables; the study establishes that terrorist activities adversely affect the financial markets and in the case of KSE, it is a highly significant relation. The reason why the negative relationship exists is because of the foremost increase in the number of terrorism attacks in Pakistan.

References:

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