The value of saints and the price of sin

Sze Kee Koh, Robert B Durand, Manapon Limkriangkrai

    Research output: Contribution to journalArticleResearchpeer-review

    3 Citations (Scopus)

    Abstract

    Using firms in the MSCI KLD 400 as exemplars of virtuous firms (the Saints ), and firms in the Triumvirate of Sin - alcohol, tobacco and gaming - we utilize a modification of the Feltham and Ohlson (1995) valuation model and quantile regressions to estimate Saint premiums and Sinner discounts . For firms followed by sell-side analysts, the Saint premium is, on average, 5.77 (a 19.2 premium over the share price) and the Sinner discount is, on average, 3.91 (a discount of 32.1 of the share price). The evidence supports the notion that CSR creates shareholder value. Practices contrary to social norms destroy value.
    Original languageEnglish
    Pages (from-to)56 - 72
    Number of pages17
    JournalPacific Basin Finance Journal
    Volume35
    DOIs
    Publication statusPublished - 2015

    Cite this

    Koh, Sze Kee ; Durand, Robert B ; Limkriangkrai, Manapon. / The value of saints and the price of sin. In: Pacific Basin Finance Journal. 2015 ; Vol. 35. pp. 56 - 72.
    @article{9daa906e41094b8193413b4ec63a388b,
    title = "The value of saints and the price of sin",
    abstract = "Using firms in the MSCI KLD 400 as exemplars of virtuous firms (the Saints ), and firms in the Triumvirate of Sin - alcohol, tobacco and gaming - we utilize a modification of the Feltham and Ohlson (1995) valuation model and quantile regressions to estimate Saint premiums and Sinner discounts . For firms followed by sell-side analysts, the Saint premium is, on average, 5.77 (a 19.2 premium over the share price) and the Sinner discount is, on average, 3.91 (a discount of 32.1 of the share price). The evidence supports the notion that CSR creates shareholder value. Practices contrary to social norms destroy value.",
    author = "Koh, {Sze Kee} and Durand, {Robert B} and Manapon Limkriangkrai",
    year = "2015",
    doi = "10.1016/j.pacfin.2014.10.003",
    language = "English",
    volume = "35",
    pages = "56 -- 72",
    journal = "Pacific Basin Finance Journal",
    issn = "0927-538X",
    publisher = "Elsevier",

    }

    The value of saints and the price of sin. / Koh, Sze Kee; Durand, Robert B; Limkriangkrai, Manapon.

    In: Pacific Basin Finance Journal, Vol. 35, 2015, p. 56 - 72.

    Research output: Contribution to journalArticleResearchpeer-review

    TY - JOUR

    T1 - The value of saints and the price of sin

    AU - Koh, Sze Kee

    AU - Durand, Robert B

    AU - Limkriangkrai, Manapon

    PY - 2015

    Y1 - 2015

    N2 - Using firms in the MSCI KLD 400 as exemplars of virtuous firms (the Saints ), and firms in the Triumvirate of Sin - alcohol, tobacco and gaming - we utilize a modification of the Feltham and Ohlson (1995) valuation model and quantile regressions to estimate Saint premiums and Sinner discounts . For firms followed by sell-side analysts, the Saint premium is, on average, 5.77 (a 19.2 premium over the share price) and the Sinner discount is, on average, 3.91 (a discount of 32.1 of the share price). The evidence supports the notion that CSR creates shareholder value. Practices contrary to social norms destroy value.

    AB - Using firms in the MSCI KLD 400 as exemplars of virtuous firms (the Saints ), and firms in the Triumvirate of Sin - alcohol, tobacco and gaming - we utilize a modification of the Feltham and Ohlson (1995) valuation model and quantile regressions to estimate Saint premiums and Sinner discounts . For firms followed by sell-side analysts, the Saint premium is, on average, 5.77 (a 19.2 premium over the share price) and the Sinner discount is, on average, 3.91 (a discount of 32.1 of the share price). The evidence supports the notion that CSR creates shareholder value. Practices contrary to social norms destroy value.

    U2 - 10.1016/j.pacfin.2014.10.003

    DO - 10.1016/j.pacfin.2014.10.003

    M3 - Article

    VL - 35

    SP - 56

    EP - 72

    JO - Pacific Basin Finance Journal

    JF - Pacific Basin Finance Journal

    SN - 0927-538X

    ER -