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The price of sin in the Pacific-Basin

  • Durand, Robert B.
  • Koh, SzeKee
  • Tan, Paul LiJian
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    Hong and Kacperczyk (2009) argue that social norms against sin stocks influence investor behavior and corporate financial policies. This paper examines “sin” stocks in seven Pacific-Basin markets that exhibit a variety of social norms: Australia, India, Japan, South Korea, Malaysia, New Zealand and Singapore. In doing so, we provide further evidence on the pricing of sin stocks. Consideration of measurable cultural differences between the markets suggests the price of sin is a manifestation of groupthink.

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    File URL: http://www.sciencedirect.com/science/article/pii/S0927538X12000492
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    Article provided by Elsevier in its journal Pacific-Basin Finance Journal.

    Volume (Year): 21 (2013)
    Issue (Month): 1 ()
    Pages: 899-913

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    Handle: RePEc:eee:pacfin:v:21:y:2013:i:1:p:899-913
    Contact details of provider: Web page: http://www.elsevier.com/locate/pacfin

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