| dc.description.abstract | In this thesis, I study sin stocks on the European market over the period 2005-2020.
Traditionally, sin stocks are defined as publicly traded companies involved in the sectors of
alcohol, tobacco, gambling, and defense. In addition to traditional sin stocks, I examine new
sin stocks, which are publicly traded stocks involved in oil and gas, metals and mining,
uranium, and coal. The results suggest that traditional sin stocks have excess returns in
some periods and are less held by norm-constrained investors. The new sin stocks are found
to have decreasing returns over the sample period and are undervalued but to be more held
by norm-constrained investors. Investors in sin stocks are mainly investment managers,
corporations, and individuals. This study suggests that social norms will differ between
countries and over time, which will affect what is considered sinful. The implications of these
results should be considered when investing in sin stocks on the European market. | en_US |
