Impact of Terrorism on Rupee-Dollar Exchange Rate and Stock Return: Evidence from Pakistan

Authors

  • Ashok Kumar Institute of Business Administration, University of Sindh, Jamshoro, Sindh, Pakistan Author
  • Mehtab Begum Siddiqui Assistant Professor, Institute of Commerce, University of Sindh, Jamshoro, Sindh, Pakistan Author
  • Dr. Najia Shaikh Assistant Professor, Institute of Commerce, University of Sindh, Jamshoro Author
  • Bakhtawar Khuwaja MPhil Scholar, Institute of Business Administration, University of Sindh, Jamshoro Author

Keywords:

Terrorism, Financial Market, FOREX, Pakistan Stock Exchange, Criminology, Autoregressive

Abstract

Every person's life is greatly impacted by terrorism, either directly or indirectly. Extreme terrorist prohibitions apply to the majority of nations, including Pakistan. This study's primary goal is to calculate the impact of terrorism from 2000 to 2017 on Pakistan's financial markets. This analysis spans a span of 17 years. Additionally, it looks at how frequently the Pakistan Stock Exchange and the FOREX market are linked to terrorist actions. After acquiring secondary data on the metrics for the two business classes, the autoregressive regression model is used to quantify the effects of various terrorist operations on financial markets. According to our research, terrorist attacks have a negative effect on the financial markets we are studying, but the significance of these attacks varies depending on the market. In addition to terrorism, a number of other stochastic occurrences that should have been considered are also to blame for the poor performance of the financial markets. The report makes recommendations for policy regarding institutional growth with regard to investments in the creative security sector and creating a more favorable environment for investors by altering the money supply and pricing.

https://doi.org/10.5281/zenodo.10259056

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Published

2022-06-30

How to Cite

Impact of Terrorism on Rupee-Dollar Exchange Rate and Stock Return: Evidence from Pakistan. (2022). International Research Journal of Management and Social Sciences, 3(2), 163-175. https://irjmss.com/index.php/irjmss/article/view/79

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