European Sin Stocks

2021 ◽  
Author(s):  
Siri Tronslien Sagbakken ◽  
Dan Zhang
Keyword(s):  
Sin Stocks

scholarly journals Pricing Sin Stocks: Ethical Preference vs. Risk Aversion

2018 ◽  
Author(s):  
Stefano Colonnello ◽  
Giuliano Curatola ◽  
Alessandro Gioffrr
Keyword(s):  
Risk Aversion ◽  
Ethical Preference ◽  
Sin Stocks

Sin Stocks Revisited: Resolving the Sin Stock Anomaly

2017 ◽  
Vol 44 (1) ◽  
pp. 105-111 ◽  
Author(s):  
David Blitz ◽  
Frank J. Fabozzi
Keyword(s):  
Sin Stocks

scholarly journals Deontological and Utilitarian Responses to Sacrificial Dilemmas Predict Disapproval of Sin Stocks

2020 ◽  
Author(s):  
Paweł Niszczota ◽  
Michal Bialek ◽  
Paul Conway
Keyword(s):  
Investment Decisions ◽  
Water Utilities ◽  
Process Dissociation ◽  
Social Harm ◽  
Socially Responsible ◽  
Doing Business ◽  
Sin Stocks

Investors sometimes invest in so-called ‘sin’ stocks that cause social harm as a byproduct of doing business (e.g., tobacco companies). Two studies examined whether people who demonstrate moral concerns in sacrificial dilemmas approve less of investing in sin (but not conventional) stocks. We employed process dissociation to assess harm-rejection (deontological) and outcome-maximization (utilitarian) response tendencies independently. Study 1 (N=337) assessed moral approval of sin stocks (e.g., fur and gambling industries) and conventional stocks (e.g., water utilities and semiconductor producers). People scoring higher on deontological and utilitarian response tendencies disapproved of sin, but not conventional, stocks. Study 2 (N=402) replicated this effect for willingness to invest in companies abandoning (vs. retaining) socially responsible policies to maximize profits. These findings align with studies showing that people who care about morality demonstrate sensitivity to both deontological and utilitarian considerations, and clarify the psychology involved in morally questionable investment decisions.

scholarly journals Sin stocks and ESG scores: Does the nature of your business really matter?

2021 ◽  
Vol 14 (3) ◽  
pp. 114-123
Author(s):  
Edgardo Cayón ◽  
Juan Gutierrez
Keyword(s):  
Sin Stocks

The Underpricing of Sin Stocks

2020 ◽  
Vol 29 (4) ◽  
pp. 67-76
Author(s):  
Robert N. Killins ◽  
Thanh Ngo ◽  
Hongxia Wang
Keyword(s):  
Sin Stocks

Deviations from Norms and Informed Trading

2014 ◽  
Vol 49 (4) ◽  
pp. 1005-1037 ◽  
Author(s):  
Alok Kumar ◽  
Jeremy K. Page
Keyword(s):  
Social Norms ◽  
Abnormal Returns ◽  
Informed Trading ◽  
Ex Post ◽  
Institutional Norms ◽  
Investment Choices ◽  
Sin Stocks

AbstractInvestment managers are subject to personal and institutional norms that can constrain their investment choices. We conjecture that norm-constrained investors deviate from such norms only when they have compelling information, and we predict that deviating investments earn relatively high abnormal returns ex post. Consistent with our conjecture, we find that institutions averse to holding lottery-like stocks or sin stocks earn relatively high abnormal returns when they choose to hold such stocks. We find similar but weaker results for deviations from broader style categories. Overall, our evidence indicates that deviations from established institutional or social norms signal informed investing.

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