تلخیص
The empirical findings unfold the impact of terrorism collisions on the stock returns using 330 terrorist incidents took place inPakistan from 2000 to 2017. The GARCH (1,1) methodology is employed to estimate the impact of terrorist incidents chosenbased on the human loss. This study observes that the influence of terrorist attacks’ changes with the days of the week, target type
and surprise factor. The findings conclude that the terrorist attacks that target the security forces and commercial business places
have a significant unfavorable impact on the stock returns. The significant impact of terrorist attacks on Monday and Tuesday
confirm the overreaction of investors to terrorist transpires. Furthermore, the more surprise factor between the terrorist attacks
exacerbates the adverse effect on market sentiments.
Faheem Aslam, Abdul Rasheed, Masood Hassan. (2020) The Effect of Terrorism on Capital Market Returns: An Empirical Analysis of Emerging Market, Paradigms , Vol 14, Issue .
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