Systematic Risk in Energy Sector: Evidence from Pakistan Stock Exchange

Authors

  • Syed Mumtaz Ali Kazmi National College of Business Administration and Economics, Sub Campus Bahawalpur, Pakistan. https://orcid.org/0000-0001-7462-0593
  • Altaf Hussain The Islamia University Bahawalpur, Pakistan.
  • Rehan Tahir The Islamia University of Bahawalpur, Pakistan. https://orcid.org/0009-0000-1896-7584
  • Samiullah National College of Business Administration and Economics, Sub Campus Bahawalpur, Pakistan.

DOI:

https://doi.org/10.52131/pjhss.2023.1104.0707

Keywords:

Systematic Risk, Energy Sector, CAMP Model

Abstract

Given the importance of systematic risk for the profit maximization and for the growth of the organization, the objective of the current study is to measure the systematic risk in energy sector companies listed in Pakistan Stock Exchange. To quantify the risk, the study has utilized the Capital Asset Price Model (CAPM). The study used the monthly stock price of Oil & Gas exploration companies and Oil & Gas marketing companies. This study examined the sensitivity and relationship of a sample of major oil and gas corporations to different financial risk factors. The results are aligned with theory of corporate finance and risk because our hypothesis upholds that bigger the organizations, better is their capacity to reduce the probable effects of the progressions in the political, social and practical climate which will lead the organizations to have a low systematic risk.

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Author Biographies

Syed Mumtaz Ali Kazmi, National College of Business Administration and Economics, Sub Campus Bahawalpur, Pakistan.

Associate Professor, Department of Economics

Altaf Hussain, The Islamia University Bahawalpur, Pakistan.

Associate Professor, Department of Economics

Rehan Tahir, The Islamia University of Bahawalpur, Pakistan.

MS Administrative Sciences, Department of Administrative and Management Sciences

Samiullah, National College of Business Administration and Economics, Sub Campus Bahawalpur, Pakistan.

PhD Scholar, Department of Business Administration

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Published

2023-12-17

How to Cite

Kazmi, S. M. A., Hussain, A., Tahir, R., & Samiullah. (2023). Systematic Risk in Energy Sector: Evidence from Pakistan Stock Exchange. Pakistan Journal of Humanities and Social Sciences, 11(4), 4421–4426. https://doi.org/10.52131/pjhss.2023.1104.0707

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