Table of Contents
Economics Research International
Volume 2012, Article ID 463627, 6 pages
Research Article

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

1School of Business, Oslo and Akershus University College of Applied Sciences, Oslo 0130, Norway
2Institute of Management Sciences, Bahauddin Zakariya University, Multan 60800, Pakistan

Received 26 March 2012; Accepted 22 July 2012

Academic Editor: Perry Sadorsky

Copyright © 2012 Muhammad Azeem Qureshi et al. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.


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.