Alcohol, tobacco, and gambling: Do “sin stocks” really outperform other publically listed companies?

23 September 2015

Alcohol, tobacco, and gambling: Do “sin stocks” really outperform other publically listed companies?

Andreas Hoepner and Hampus Adamsson from Henley’s ICMA Centre hit the headlines recently, with their award-winning research into sin stocks featured in The Financial Times.

Andreas Hoepner and Hampus Adamsson from Henley’s ICMA Centre hit the headlines recently, with their award-winning research into sin stocks featured in The Financial Times.

'Do "sin stocks" really outperform other publically listed companies?' questions the conclusion of previous research by Hong & Kacperczyk (2009) that "sin stocks" such as alcohol, gambling and tobacco outperform other publically listed companies.

In this new research the academics found that when looking at portfolios that were value-weighted, "alcohol, tobacco and sin portfolios do not exhibit any significant outperformance". In the case of gambling portfolios, there was even a notable underperformance.

Read the full story on the ICMA Centre website.

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