No Title paper Journal year

1 Impact of General Elections on Stock Open Journal of Economics and 2018

Markets in India Commerce

2 Currency Exchange Rate Forecasting Desh Peramunetilleke Raymond 2015

from News Headlines K. Wong School of Computer
Science & Engineering University of
New South Wales Sydney, NSW
2052, Australia

3 Stock Price Reaction to News and No- Elsevier 2015

News: Drift and Reversal After
Headlines

4 Impact of Political Event on Trading International Review of Business 2009

volume and Stock Returns: The Case Research Papers
of KSE
5 IMPACT OF GENERAL ELECTION City University Research Journal 2016
2013 ON THE SHARE PRICES OF
PUBLIC LISTED FIRMS:
EVIDENCE FROM PAKISTAN.

6 Stock Market Reaction to Political Journal of Economics and 2013

Events (Evidence from Pakistan) Sustainable Development

7 IMPACT OF POLITICAL AND VFAST Transactions on Education 2015

CATASTROPHIC EVENTS ON and Social Sciences
STOCK RETURNS

8 INVESTIGATING PRESENTATIONAL ACADEMY OF ACCOUNTING 2016

CHANGE IN COMPANY ANNUAL AND FINANCIAL STUDIES
REPORTS: AN EXTENSION JOURNAL

9 The impact of financial news and Southwestern University of Finance 2014

public mood on stock movements and Economics, China
10 EFFECTS OF POLITICAL RISK WESONGA BRONO EVANS 2013
AND MACROECONOMIC
FACTORS ON
STOCK MARKET RETURNS AT
NAIROBI SECURITIES
EXCHANGE,
KENYA

11 Effects of Political Process on the ACADEMY OF ACCOUNTING 2014

Economic Performance of a AND FINANCIAL STUDIES
Country: A Case of Kenya General JOURNAL
Elections

12 Political elections, abnormal returns Investment Management and 2016

and stock price volatility: the case of Financial Innovations"
Greece”

13 Stock Market Reaction to Political Journal of Managerial Sciences 2014

Event ‘Sit-In’ (Evidence from
Pakistan)

14 Market Efficiency: National Elections Journal of Managerial Sciences 2015

and Stock Market
15 THE EFFECT OF POLITICAL Investment Management and 2013
NEWS ON STOCK MARKET Financial Innovations"
RETURNS IN
KENYA: THE CASE OF MARCH
2013 GENERAL ELECTIONS

16 Stock Market Reaction to Good and Asian Journal of Finance & 2012
Bad Political News Accounting

17 The effect of presidential election in Economic REsEaRch-Ekonomska 2017

the USA on stock return flow – a istRaživanja
study of a political event

18 Political Cycles and Stock Returns Fama-Miller Center for Research in 2017
Finance

19 Volatility and Regulation of Stock USA: IGI-Global Publishing, 2016

Markets: Evidence from South Asia
20 STOCK MARKET REACTIONS ON REVISTA EVIDENCIAÇÃO 2017
RETURNS AND TRADING CONTÁBIL & FINANÇAS
VOLUME: THE IMPACT OF THE
GLOBAL FINANCIAL CRISIS1
Research question/objective
The objectives of the study is to analyze the
effect of general elections on both NSE and
BSE returns in pre-elections and post-
elections period and to analyze and compare
the volatility i.e. variance of daily returns in
the stock market for short term (10 days),
medium term (20 days) & long term (30 days)
in pre-elections and post- elections period.
This paper specifically describes an approach Quantitative.
to forecast short-term movements in the
foreign exchange (FX) markets from real-time
news headlines and quoted exchange rates
based on hybrid data mining techniques.
Do returns after major public news and returns Quantitative.
after large price movements (in the absence of
public news) differ? And if so, what can this
difference tell us about how investors respond
to information?
The purpose of the research is to examine the Quantitative.
relationship between trading volume and stock
returns in Karachi Stock Exchange (KSE) 100-
INDEX. It is difficult to test non-informational
trade by using merely the stock return data
(Ali, 1997)
Methdology Finding
Quantitative.The secondary data After using the paired T- Test, we found
have been analysed using the that the impact of Electionon average
following statistical tools: 1 First, returns is not significant whether in pre or
the logarithmic daily returns have post Election period, for short term,
been found over the previous medium term & long term.
day’s closing value during the
entire 5 year period.  Second, the
average returns in pre-elections
and post-elections period, during
the previous and the next 10, 20
and 30 days are calculated.
The output is a categorical forecast about
currency exchange rates: the dollar moves
up, remains steady or goes down within
the next one, two or three hours
respectively. On a publicly available
commercial data set the system produces
results that are significantly better than
random prediction. The contribution of this
research is the smart modeling of the
prediction problem enabling the use of
content rich text for forecasting purposes.
I find strong drift after bad news. Investors
seem to react slowly to this information. I
also find reversal after extreme price
movements unaccompanied by public
news. The separate patterns appear even
after adjustments for risk exposure and
other effects.
We employ Phillips Perron unit root test to
investigate the relationship between
trading volume and stock returns. It
indicates that stock returns moved too
much due to change in the fundamentals,
aggregate expected returns. The same
results found in the pre and the post-
resignation period of Ex President Pervez
Musharaf. Political events affect the stock
price due to which the trading volume and
stock return fluctuate positively or
negatively as per the intensity of the event.
This study examines the effect of general
election 2013 on stock prices of firms listed at 50 randomly selected companies
Karachi stock exchange. For this purpose we from the Karachi stock exchange.
first find out the abnormal returns during the
event. The abnormal returns show that the
event has an impact on share prices of public
listed firms of Pakistan. We then used
regression (least square method) model 1 to
find out the significance of the event impact.
This model is also utilized for finding out the
impact of size, leverage and profitability on
share prices.
The research study conducted is to find out
how the stock prices react when an event
occurs.
We observe that political events do have an
impact on stock returns in the short run, i.e., 5
days window and are normalized afterwards.
The impact of catastrophic events is observed
only on 15 days window. Thus, we conclude
that KSE is inefficient in semi strong form.
This study extends previous work with a seven Quantitative.
year (2004-10) longitudinal investigation of
annual report design for Standard & Poor’s
(S&P) 500 companies.
In an era of internet, investors can rapidly
obtain more valuable and timely information.
With such rapid information influx, investor
decisions tend to be influenced by peer and
public emotions.
The sample of the study includes
The time period of the study is
from 2007-2010.
Quantitative.Two different
variables are involved in this
study. Political and catastrophic
events as independent and stock
returns as dependent variable.
we propose a quantitative media- Our main findings are (1) fundamental
aware trading strategy to
investigate the media impact on can enrich the knowledge of investors and
stock markets
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
The findings from the analysis clearly
showed that event have significant impact
on the share prices of the Karachi Stock
Exchange. Some major events that took
place in 2007-2010, drop the KSE-100
index from top to bottom.
In a nutshell, political events have an
impact on stock returns for shorter period
after which returns start adjusting. It makes
KSE an inefficient market in semi strong
form. While catastrophic events’ impact on
stock returns depend on the time when
information about the exact severity and
losses caused by catastrophic events were
completely available to the investors.
Our findings point to two design
normalizations underway in our sample.
First, SEC Form 10-K appears to play a
much larger role in the annual report to the
shareholders. Second, the pattern of
evidence recapped
information of firm-specific news articles
affect their trading activities; (2) crowd
sentiments cause emotional fluctuations in
investors and intervene in their decision
making; and (3) the media impact on firms
varies according to firm characteristics and
article content.
The main objective of the study was to
determine the effects of political risk and
macroeconomic factors on stock market
returns at Nairobi Securities Exchange, in
addition the effects of each independent
variable on the stock market returns at Nairobi
securities exchange was determined.
Quantitative. The findings showed that political risk,
foreign exchange rate, inflation rates and
interest
rates have an inverse relationship with the
performance of NSE all share index whilst
oil
prices and money supply have a positive
effect on the same index.

The core intent of this research was to The paper employed a secondary A major finding of the research showed
understand how key economic variables such research design. The sample size that election trends have a strong impact
as the stock market performance, foreign direct of this research was estimated at on the performance and stability of an
investment, interest rates and inflation rates are 12 years. The data was analyzed economy.
affected by political processes. using standard software. The
variables were measured using
correlation analysis.

Our paper investigates the stock price index
response around the election dates and the
effects of change in the ruling political party in
Greece on the return and risk in the ASE.
Quantitative. The empirical findings raise doubts about
the efficiency of the Greek stock market
and might have important implications for
investors with respect to decisions
regarding entering and/or exiting the
market or investment strategies around
time periods where political elections are
going to take place.

The purpose of the study is to investigate the Quantitative. The results indicate that AABR and
reaction of Karachi stock exchange (KSE) 100 CAABR for market model are statistically
Index during political event (Sit-in) using significant. Furthermore these returns are
event study methodology.All the listed firms negative for most of the days for both
in Karachi Stock Exchange both under the AABR and CAABR using market model.
head of financial and non-financial sectors are And the market is inefficient which fails to
the population for this study fully reflect public information. The results
also show that the investors who invest
their money in financial sector may earn
excess abnormal returns than Non-
financial sector.

The paper aims to explore the Karachi stock
exchange volatility during national elections
for the sample period of 1997 to 2013.
The research used secondary data The results indicate that Karachi stock
to test the proposed hypothesis. exchange exhibit inefficient behavior
The stock market data of KSE 100 around these national elections.
index and share prices of the
companies was collected from
Karachi Stock Exchange, Business
Recorder
. The study was based on event study
methodology and employed the market model
to estimate the expected returns, consequently
leading to the computation of abnormal
returns. The event day was 4th March 2013.
The estimation window was 120 days prior to
the event window which comprised of 60
trading days prior to the event day and 60
trading days after the event date.
The purpose of this study is to analyze the
consequence of political news on stock market
returns and hence its volatility. For this
purpose we split the political news into two
categories (good and bad news). We used
univariate asymmetric GARCH model, to
gauge the impact of political news on returns
and volatility.
Event study methodology will be applied in
this paper in order to measure the effects of a this paper a five-day event period
political event. The event is presidential
election in the United States of America, held future (therefore, T-1 – T+3) after
on 6 November 2012. The presidential election the studies of Beccheti and
in the USA is an event of a great importance. Cicireti (2011).
Our objective is simply to highlight a new
mechanism driving political cycles, one
capable of explaining the presidential puzzle.
The aim of this study was to obtain
information about the financial market
structure of Bangladesh, India, Pakistan by
applying Granger Causality Analysis to the
relationship of trading volume and stock
returns volatility in the period 1980–2012.
Quantitative.
Even though GARCH performs
well at describing volatility, its
underlying assumption about the
behavior of the squared residuals
is problematic. The model expects
that the same magnitude of
positive and negative shocks have
the same effects on variance. This
is seen in the model by squaring
the previous values of shocks.
For the purposes of research in
has been created, asymmetric to
Quantitative.
In this study, the relationship
between trading volume and stock
return volatility was examined for
the period 1989-2012 in
Bangladesh, India and Pakistan.
The study findings were consistent with
previous studies where stock prices were
reported to react to political news.
Volatility was noticed in stock prices in
the short term to the election date with
stock prices steeply rising around the
election date.
Our results show that good news have
positive impact on the returns of the
KSE100 index and also decreased the
volatility. On the other hand, bad political
news has negative influence on the returns
(decrease the returns) and increase the
volatility (positive effect)
parametric tests show a statistically
significant negative impact of the event
on stock return, whereby with the
nonparametric tests there is no consistent
estimation. This paper provides an
interpretation of the results.
We develop an equilibrium model of
political cycles driven by voters’ time-
varying risk aver- sion. This novel
mechanism generates the presidential
puzzle of Santa-Clara and Valkanov
(2003) inside the model. The model
implies that both stock returns and
economic growth should be higher under
Democratic administrations, as we observe
in the data.
As a result of the analysis, it was seen that
the relationship between the two variables
for Bangladesh was seen to be in the
direction of from trading volume towards
stock return volatility. Therefore The
Mixture of Distributions Hypothesis was
accepted as valid for Bangladesh. This
means that the information coming to the
Bangladesh stock market is spread to the
market immediately. Therefore the
Bangladesh stock market is an effective
market.
This study empirically examines the short term The sample data for the stock There is evidence of significant
under- and overreaction effect in the Ka- rachi price, trading volume and KSE overreaction in the first two weeks and
Stock Exchange, Pakistan, in the context of the 100 index are obtained from the significant under- reaction in the 12th and
2008 Global Financial Crisis considering the Karachi Stock Exchange (KSE) 24th week following specifically in the
period from September 2007 to 2009. and Securities and Exchange financial sector. For the non-financial
Commission of Pakistan (SECP) sector, the returns stay positive and
websites for the period September insignificant for both the winner and loser
2007 to 2009. To reach our portfolios thereby negating any evidence
objective, we used event studies. of significant overreaction.
Future Research/Limties
NO

This reveals the enormous

potential of the system and
opens up many paths for future
research in this area. It is also
planned to predict in future other
financial markets such as bond
markets.

On the basis of this study it can

be recommended that further
studies can be conducted basing
on the entire tenure of the ex-
president of Pakistan, where the
impact of the his Presidency as
well as his position as a General
can be studied that how his
position effected the stock
exchange as well as the political
situation in Pakistan.
, this is the first study of its kind,
up to the best level of
researchers'knowledge that has
focused on the impact of single
general election on stock prices.
Finally, this study results will
serve as food for thoughts for
future researchers.

the negative impact of events on

the share prices of the Karachi
Stock Exchange.

use different variable in new

study and find impact on stock
markert.

one can be confident that SEC

Form 10-K in a shareholder
annual report provides an
improved quality of nonfinancial
and financial information and
ultimately will provide a greater
potential for increased
shareholder value.

investigations of additional
internal Web media functions
and their impact on stock
markets would be interesting.
Researchers may apply different
frameworks to the same data, or
use different research methods,
different assumptions and
improved decision making
techniques. Future study could
examine the impact of political
risk on the volatility of other
stock market segments such as
bond market using ICRG’s
political risk data.

This research was carried out

based on the economic
performance in Kenya while
focusing on the electioneering
trend. Future work may be
carried out to investigate the
social and financial effects of
political trends on the stability of
achange
country.
variable and see the
impact after and befor election

The study has also considered

different time intervals for the
analysis of CAABR by
employing both MM and MMG.
The results indicate that CAABR
shows a statistically significant
excess return in five time
windows out of six.
negative returns recorded in the
run up to the elections are
immediately corrected after
the event date. The investors will
therefore be able to recoup their
investments after the
event date

In future use more countries in

our data such as South Asian
countries and test the impact of
one country’s political news on
the other. For this we may
employ multivariate EGARCH
model for studying the volatility.

future research is to monitor the

reactions of the financial sector
to the election, over a long
period of time, in several
successive electoral processes. It
is possible that a redefined
portfolio would provide diverse
results in both parametric and
nonparametric tests.
Future work can also extend our
model in other ways.
Endogenizing tax rates might
help us understand the time
variation in those rates. Adding
learning about government
quality could generate
asymmetries between
incumbents and challengers.
Allowing for heterogeneity in
risk aversion could produce
additional asset pricing
implications.
As daily stock return volatility
and trading volume data were
not available for Bangladesh,
India and Pakistan, it was
necessary to consider annual
data. Further studies on this
subject would provide more
reliable findings with the use of
daily, weekly, monthly or
quarterly data of countries.
the trading volume information
can be cap- italized by the
investors to adopt any profitable
contrarian strategy while
forming investment port- folios
especially following a crisis
news by buying loser stocks and
selling winner stocks.