Performance of sin stocks relative to market indices in selected Asian countries: Philippines, Hong Kong, South Korea, Malaysia and India-- for the periods 2010-2014

• Main Authors: Kho, Olga T., Luistro, Darrel Francis B., Menchaca, Maria Isabel D., Tacorda, Kiana Marie S.
• Format: text
• Language: English
• Published: Animo Repository 2015
• Subjects: Stock exchanges > Asia; Finance and Financial Management
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/8989
• Institution: De La Salle University

There are different categories as to how people choose the type of investment outlet and securities they want. Some base it on their risk appetite, lifestyle choices, and public scrutiny. The stock market is often considered to be a common investment outlet for people to invest in their money. There are numerous stocks available for investors, however, not all stocks are suitable for certain investors, in particular sin stocks which engage in the production of alcohol and tobacco, and the operation of gaming, because of their negative impact on society which results in these stocks not being commonly invested in. This research compared the performance of sin stocks relative to the market indices of the selected Asian countries namely the Philippines, Hong Kong, South Korea, Malaysia and India. Moreover, this research examined if religion and number of trading days can affect the performance of sin stocks in the chosen Asian countries. In this study, the results have shown that the individual performance of the selected Asian countries, using the capital asset pricing model (CAPM), four (4) out of the five (5) selected Asian countries outperformed their respective market index, however, South Korea was the only country that did not outperform its market index. As a whole, the selected Asian countries outperformed their market indices using the five (5) different panel regression models.