Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/269980 
Year of Publication: 
2020
Citation: 
[Journal:] Cogent Economics & Finance [ISSN:] 2332-2039 [Volume:] 8 [Issue:] 1 [Article No.:] 1821998 [Year:] 2020 [Pages:] 1-23
Publisher: 
Taylor & Francis, Abingdon
Abstract: 
Terrorism plays a pivotal role in influencing the stock indexes of many countries. This research article claims to be first in accessing the asymmetrical effect of multiple categories of terroristic activities on stock indexes in the presence of macroeconomic volatility. This research utilized a Non-linear autoregressive distributive lag model (NARDL) to find out the asymmetrical relationship between terroristic disruptions and stock indexes. Data on terroristic attacks have been incorporated from 2002 to 2015, and more than 4600 observations taken into account. Positive shocks to attacks on mosques, killed in mosque attacks, killed in drone attacks, and army personal fatalities are negatively affecting the stock prices in the short run. Results indicated that such disruption causes a temporary negative effect on stock indexes only in the short run but in the long-run stock exchange remains resilient against such disruptions.
Subjects: 
NARDL and BDS test of non-linearity
stock exchange resilience
terrorism and macroeconomic volatility
terrorism and stock indexes
terrorism in Pakistan and stock market performance
Persistent Identifier of the first edition: 
Creative Commons License: 
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Document Type: 
Article

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