The Influence of Industry Characteristics on Stock Price Volatility in Pakistan: Examining the Moderating role of Industry Concentration

Authors

  • Saira Ishfaq Phd Scholar, Faculty of Management Sciences, International Islamic University, Islamabad
  • Muhammad Faisal Rizwan Associate Professor, Faculty of Management Sciences, International Islamic University, Islamabad

Abstract

The study investigated the factors affecting stock price volatility in Pakistan. To achieve the study's objective, data of firms listed at PSX in 24 sectors were collected from the State Bank of Pakistan's Balance sheet Analysis, PSX, WDI, and Yahoo Finance. The study covered the time of 21 years, from 2000- 2020. A random effect model was used based on Hausman’s Test results. The study found a positive relationship between leverage and oil prices whereas size and inflation have negative relationship with SPV. The results of the study are helpful for investors in making investment decisions and selecting the optimal portfolio. It will also contribute to the existing body of knowledge by providing new insights into factors that affect Stock Price Volatility in Pakistan.

Keywords: Stock Price Volatility, Industrial concentration, HHI, macroeconomic indicators, Pakistan, PSX.

Downloads

Published

2023-10-19

Issue

Vol. 2 No. 2 (2023): Journal of Business and Management Research

Section

Articles

How to Cite

The Influence of Industry Characteristics on Stock Price Volatility in Pakistan: Examining the Moderating role of Industry Concentration. (2023). Journal of Business and Management Research, 2(2), 612-633. https://jbmr.com.pk/index.php/Journal/article/view/54