Stock Prices’ Variability around Earnings Announcement Dates at Karachi Stock Exchange

Abstract

The purpose of this study is to investigate how earnings announcement event affects stock returns at Karachi Stock Exchange (KSE). For this purpose we use the KSE-100 Index as our sample. We use the CAR Analysis to analyze the impact of earnings announcement over the stock returns around announcement dates. Our results suggest that KSE experiences abnormal stock returns around earnings announcement dates for the overall market and for different categories which indicate that efficient market hypothesis does not hold in Pakistani market and point out the presence of informational dissemination inefficiencies in the market.

Quarterly Earnings Announcement Effect on Stock Return and Trading Volume in Nepal

“…The study used daily data to set the event window at five days before and five days after the earnings announcement day which is shown in figure 1. This event window was used by Qureshi, Abdullah and Imdadullah (2012) to test the stock prices variability around earnings announcement date at Karachi Stock Exchnage. The announcement day represented by day zero (0).…”

Benford’s Law and Stock Market—The Implications for Investors: The Evidence from India Nifty Fifty

“…They employed even study methodology and found a negative relationship between the observed variables. Qureshi, Abdullah, and Imdadullah (2012) in the Pakistan context, investigated how earnings announcement event affects stock returns and observed that efficient market hypothesis does not hold true in the Pakistan context. Odendaal (2014) examined the same, that is, impact of earnings announcements on stock returns with reference to London Stock Exchange and found similar results.…”