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This paper attempts to study the impact of pre-specified set of macroeconomic factors on firms’ stock returns for nine nonfinancial sectors listed in Karachi Stock Exchange. The macroeconomic factors included are consumer price index, industrial production index, market returns, risk free return and money supply. The studied sample covers data from 2001 to 2011. Panel analysis using pooled OLS shows that all studied sectors firm’s stock returns have negative relationship with consumer price index, money supply and risk free rate, whereas industrial production index and market returns indicates a positive relationship. The results of this study have important implications for the equity investors and policy makers.

Isma Zaighum. (2014) Impact of Macroeconomic Factors on Non-financial Firms’ Stock Returns: Evidence from Sectorial Study of KSE-100 Index, Journal of Management Sciences, Volume 1, Issue 1.
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