Is Sin Always a Sin? The Interaction Effect of Social Norms and Financial Incentives on Market

• Main Authors: LIU, Yanju, Lu, Hai, Veenstra, Kevin
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2011
• Subjects: Social norms; financial incentives; sin stocks; Accounting; Corporate Finance
• Online Access: https://ink.library.smu.edu.sg/soa_research/883; http://www.rotman.utoronto.ca/facbios/file/LiuLuVeenstra_Jan22_2011_Finalversion_Full.pdf
• Institution: Singapore Management University

Using alcohol, tobacco, and gaming consumption data and people’s attitudes toward these sin products to proxy for the social norm acceptance level, we examine how social norms and financial incentives jointly affect the decisions of investment professionals and managers of these “sin” companies. We...