The price of sin : The effects of social norms on markets $

@inproceedings{Hong2009ThePO,
  title={The price of sin : The effects of social norms on markets \$},
  author={Harrison Hong and Marcin Kacperczyk},
  year={2009}
}
We provide evidence for the effects of social norms on markets by studying ‘‘sin’’ stocks—publicly traded companies involved in producing alcohol, tobacco, and gaming. We hypothesize that there is a societal norm against funding operations that promote vice and that some investors, particularly institutions subject to norms, pay a financial cost in abstaining from these stocks. Consistent with this hypothesis, we find that sin stocks are less held by norm-constrained institutions such as… CONTINUE READING
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