Saints versus Sinners. Does morality matter?

Robert B Durand, Sze Kee Koh, Manapon Limkriangkrai

    Research output: Contribution to journalArticleResearchpeer-review

    49 Citations (Scopus)


    Social norms constrain investors from investing in sin stocks , affecting the returns and corporate financial policies of such firms (Hong and Kacperczyk, 2009). This paper finds that Saints are influenced by social norms. In almost all instances, where an effect on Sinners is positive (negative), we find that the effect for Saints is negative (positive). Hong and Kacperczyk provide evidence that social norms prevent evil outcomes. This paper finds that social norms exert positive pressure on both investors and firms in the US equity market.
    Original languageEnglish
    Pages (from-to)166 - 183
    Number of pages18
    JournalJournal of International Financial Markets, Institutions and Money
    Publication statusPublished - 2013

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