Open AccessInfluence of Terrorist Activities on Financial Markets: Evidence from KSE
Author(s) -
Usman Bashir,
Inam-ul-Haq,
Syed Muhammad Ahmad Hassan Gillani
Publication year - 2013
Publication title -
financial assets and investing
Language(s) - English
Resource type - Journals
eISSN - 1804-509X
pISSN - 1804-5081
DOI - 10.5817/fai2013-2-1
Subject(s) - terrorism , stock exchange , autoregressive conditional heteroskedasticity , stock (firearms) , economics , business , financial market , financial economics , financial system , accounting , volatility (finance) , finance , political science , geography , law , archaeology
This paper investigates the influence of terrorist activities taking place in Pakistan on 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 the terrorist activities adversely affect the financial markets and in case of KSE, it is highly significant relation. Reason for the negative relationship exists because of the foremost increase in number of terrorism attacks in Pakistan