|29th IBIMA Conference
3 - 4 May 2017
Stock Returns VS T-Bills: Pre and Post CPEC Announcement Analysis
Nawaz Ahmad and Babar Ansari,
The objective of the research is to analyze the impact of before and after China Pakistan Economic Corridor announcement on Stock Returns and T-Bills of Pakistan. Data has been collected from official website of State Bank of Pakistan and Bureau of Statistics. To analyze the impact of CPEC announcement. At first step, average stock returns and T-bills returns are compared for pre and post CPEC announcement using paired sample t-test. The results show that there is no significant difference between stock returns whereas post CPEC announcement T-bill returns are significantly higher. Moreover, average stock returns and T-bills returns are compared for pre and post CPEC announcement tenures and it is found that average stock returns are significantly higher than average T-bills return in pre CPEC announcement tenure whereas for post announcement tenure, there is no statistically significant difference.