Stock attractiveness after inclusion in stock index: empirical evidence from KSE 100 index

Rashid Ameer*

*Corresponding author for this work

Research output: Contribution to journalArticle

Abstract

This paper explores attractiveness of stocks on Karachi Stock Exchange using event study methodology. The main findings of this paper are KSE 100 has included small share capital base manufacturing companies during 2000-2002. There is no significant difference in pre tax profitability of companies included (excluded) except for their capital structures. The results from event study seem to suggest that KSE100 stocks would be more attractive to passive investors. The passive investors tracking moderate beta stocks on KSE100 index are better off until beta of the stocks climbs up.

Original languageEnglish
Pages (from-to)25-44
Number of pages20
JournalManagement Research News
Volume28
Issue number4
DOIs
Publication statusPublished - 1 Apr 2005

Keywords

  • Karachi stock exchange
  • Portfolio diversification
  • Stock risk

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