IMPACT OF GENERAL ELECTION 2013 ON THE SHARE PRICES OF PUBLIC LISTED FIRMS: EVIDENCE FROM PAKISTAN.

Abstract

This study investigates the impact of the general election 2013 on share prices of public
listed firms of Pakistan. To analyze, least square regression model is used as the
research methodology. The sample of the study includes 50 randomly selected
companies from the Karachi stock exchange. The results of the study highlight that
share prices of public listed firms of Pakistan responds negatively to such political
events. The results further highlight that share prices of large sized and highly levered
firms observed more positive changes during the general election 2013. Further, the
share prices of more profitable firms experienced low volatility than less profitable
firms. The findings of the study have policy implications for manger and investors.