Impact of CPEC, Panama Leak and Surgical Strike on Stock Market

Abstract

This study examines the impact of recent mega-events which include leak of panama papers,
CPEC and surgical Strike on stock returns of public listed firms of China, Pakistan, India, Saudi
Arabia, US and Uk. Event study is used as the research methodology to investigate reaction of
stock market returns on events defined as announcement date. The sample of the study includes
stock returns of multiple countries from January 2014 to October 2016.Because china Pakistan
Economic Corridor is playing the frontline role for the development of china Pakistan and other
countries associated with.Further firms functioning in corrupt countries especially in those
where high-ranked politicians and government representatives were involved by name in the
leaked data and surgical strike announcement by the India on Pakistan that represent diversified
experience. The results of the study highlight that stock returns of some countries responds
significantly to some of these events and some events don’t have any significant relationship with
stock returns. The findings of the research study have implications for investor and managers.