Impact Of Global Financial Crisis Of 2008 And Covid-19 Pandemic: A Comparative Study Of Stock Market Performance In Pakistan

Abstract

The study focuses on examining the impact of COVID-19 pandemic and 2008 financial crisis on the stock market performance. This study furthermore compares the impact of these both crises and checks which one has a severe impact. This study has obtained data from the Standard Capital Securities for KSE 100 index return. Data has been taken for two time periods: 1^st September 2008 to 31^st august 2009 and 1^st February 2020 to 31^st January 2021. This study uses regression analysis technique to check the impact of both the crises separately. This study contributes to the literature in a number of ways. Geographically no such study has been conducted and this would be one of its kinds. This will help us determine the perspectives and behaviors of investors and formulate policies to be adopted in future for containing such impacts on stock markets. The study concluded that 2008 had a negative but weak impact on the stock market performance, whereas the COVID 19 pandemic had positive and moderate impact on the stock market performance. In comparison, COVID 19 pandemic had a greater impact on the stock market performance.