The Financial cost of rivalry: A tale of two South Asian neighbours

Sheraz Ahmed, Mujahid Hussain

Research output: Contribution to journalArticleScientificpeer-review

5 Citations (Scopus)


This paper examines the impact of bilateral political and military news on the returns and volatility of the stock markets of India and Pakistan. Our results show that the volatility of both stock markets shows a significant reaction on the arrival of the news related to military aggression in a reciprocal way. Moreover, while the Indian stock market’s volatility seems to show a subdued response to bilateral political news, the Pakistani stock market appears to be sensitive to both political and military news originating from either country. The relatively stronger impact of military events can be attributed to a higher financial cost of confrontation between two countries.
Original languageEnglish
Peer-reviewed scientific journalEmerging Markets Finance and Trade
Issue numberSupplement 3
Pages (from-to)35-60
Number of pages26
Publication statusPublished - 2014
MoE publication typeA1 Journal article - refereed


  • 512 Business and Management
  • KOTA2014


Dive into the research topics of 'The Financial cost of rivalry: A tale of two South Asian neighbours'. Together they form a unique fingerprint.

Cite this