Reflection of Regulatory Announcement in Equity Market: Fresh Insight from Oil & Gas Sector of Pakistan

Abstract

This study is based on the problem that how regulations made by oil and gas regulatory authority influences the companies in oil and gas sector of Pakistan. We identify 13 regulatory changes in oil and sector of Pakistan which broadly includes the announcement related to the formulation, functions and responsibilities of oil and gas authority, deregulation and changes in the prices of oil and gas products, interference of apex court into the oil and gas sector and privatization of oil refineries in emerging market of Pakistan. Well-liked event study methodology is used to uncover the impact of regulation announcement on equity prices in Pakistan. Beside this, we also capture the effect of regulation announcement on the firm performance by introducing the dummy variable in ordinary least framework. In line with the financial and econometric theory criteria, we use the sales growth, leverage, liquidity and tangibility as control variables. Study reveal that regulatory announcements have statistically significant aggregate effect on the oil and gas sector of Pakistan stock exchange. We recommend to the policy makers, managers and regulators that the stock prices of oil and gas companies are more sensitive toward the regulatory announcements related to interference of Supreme Court and regulations concerning to the formulation, functions and responsibilities of oil and gas regulatory authority in Pakistan.

Toward economic growth without emissions growth: the role of urbanization & industrialization in Pakistan

“…Likewise, the growing consumption of oil as an energy source also leads to a disastrous impact on the country’s environmental impact. As per Husnain et al ( 2020 ), Pakistan’s oil consumption significantly reached 431,000 b/d in 2015, which outpaced the domestic production, i.e., 95,000 b/d. In terms of coal consumption, Pakistan was one 138 th position in 2016.…”

Nexus between Governance Indicators & Sustainable Stock Market Development in Pakistan: Evidences from Symmetric and Asymmetric Analysis

“…The discussion indicates bi-directional causality between explanatory variables in case of Pakistan. The latest studies that support and wet this discussion include (Husnain et al, 2020;Lakshmi et al, 2021;Ouedraogo & Sawadogo, 2020;Uzum et al, 2021).…”

“…Political stability and absence of violence/terrorism is the 4 th selected component of governance indicators. Studies have proved that it plays a pivotal role in the development of economic and financial growth of any country (Abdul Rahman & Saif, 2020;Husnain, Islam, & Ali, 2020;Ming & Jais, 2021). Both components: (i) political stability (PS) & (ii) absence of violence/terrorism (AVT) have positive, significant and major impact on the stock market returns (SMR) and economic development (ED) particularly in Pakistan.…”

“…In this paper, the researcher has discussed the distinct impact of political, violence and terrorism events on stock returns of Pakistan that how political news and acts of terrorisms had affected stock market. The research studies during the last two decades indicate that above mentioned factors are the major contributory factors of the variability in stock returns of Pakistan (Abdul Rahman & Saif, 2020;Haseeb, Wattanapongphasuk, & Jermsittiparsert, 2019;Husnain et al, 2020;Masood, Javaria, & Petrenko, 2020;Monsura & Villaruz, 2021;Uzelac et al, 2020).…”