“Impact of EXPO 2020 on Dubai Financial Market” – An Event Study on Banks, Investment and Insurance Sectors

Abstract

This study presents an overview of how stocks react to a particular event of the country. An attempt has been made to analyse carefully the information of Dubai Financial Market stocks reaction towards the announcement of EXPO 2020 in the year 2013 even after. Main focus was only on three sectors i.e Banking, Insurance and Investment. Standard event study methodology and market model approach have been used to calculate the abnormal returns and cumulative abnormal returns of select sectors. The cumulative abnormal return for Banking and Investment observed as very appealing compared to Insurance Sector. There are many variations in the cumulative abnormal returns of Investment Sector, but the trend is increasing for this sector compared to Insurance Sector. This study also shows that there is no overreaction of Dubai Financial Market stocks especially the stocks of finance sector with regard to the event announcement or thereafter.