The Underpricing of Sin Stocks

Killins, Robert N.; Ngo, Thanh; Wang, Hongxia

doi:10.3905/joi.2020.1.126

Cited by 3 publications

(2 citation statements)

References 13 publications

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“… 2011 ; Killins et al. 2020 ), higher costs for loans (Chava 2014 ; Goss and Roberts 2011 ; Kim et al. 2014 ; Nandy and Lodh 2012 ), and face capital constraints (see, e.g., initiatives like Net Zero Asset Managers).…”

Section: Methodsmentioning

confidence: 99%

The Influence of ESG Ratings On Idiosyncratic Stock Risk: The Unrated, the Good, the Bad, and the Sinners

Horn

2023

Schmalenbach J Bus Res

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This study analyzes whether stocks of companies with environmental social governance (ESG) rating show lower idiosyncratic risk. The main analysis covers 898,757 company-month observations of US stocks in the period from 1991 to 2018 and controls for stocks’ exposure to liquidity, mispricing, innovations in volatility risk, investor sentiment, and analysts’ forecast divergence. The main finding is that the receipt of an ESG rating decreases idiosyncratic stock risk. The effect is stronger for stocks that receive a higher ESG rating. Nevertheless, even when companies receive a lower ESG rating, they show significantly lower idiosyncratic risk than stocks without an ESG rating. Furthermore, stocks subject to a negative screen show lower idiosyncratic risk during recessions than comparable stocks with an ESG rating but without a negative screen. The results support the notion that the receipt of an ESG rating decreases uncertainty regarding future stock risk and return and show that ESG ratings and negative screens individually influence stock risk and, therefore, should be considered separately.

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Section: Methodsmentioning

confidence: 99%

The Influence of ESG Ratings On Idiosyncratic Stock Risk: The Unrated, the Good, the Bad, and the Sinners

Horn

2023

Schmalenbach J Bus Res

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“…As noted by (Vergne, 2012), "a high level of disapproval attracts public scrutiny, raises doubts, and creates suspicion among stakeholders <…>, which increases the risk of isolation and scapegoating for the stigmatised group members that are publicly challenged". In some cases this can lead to artificially low share prices of stigmatized firms (Killins et al, 2020) or to a massive boycott of their products (McDonnell, King, 2013). To mitigate these negative effects, the firms operating in a stigmatized industry implement various stigma management strategies.…”

Section: The Development Of the Industry Stigmatization Conceptmentioning

confidence: 99%

Untitled

2022

Foresight and STI Governance

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It publishes original research articles, offering new theoretical insights and practice-oriented knowledge in important areas of strategic planning and the creation of science, technology, and innovation (STI) policy, and it examines possible and alternative futures in all human endeavors in order to make such insights available to the right person at the right time to ensure the right decision.The journal acts as a scientific forum, contributing to the interaction between researchers, policy makers, and other actors involved in innovation processes. It encompasses all facets of STI policy and the creation of technological, managerial, product, and social innovations. Foresight and STI Governance welcomes works from scholars based in all parts of the world.Topics covered include:• Foresight methodologies and best practices;• Long-term socioeconomic priorities for strategic planning and policy making;• Innovative strategies at the national, regional, sectoral, and corporate levels;• The development of National Innovation Systems;• The exploration of the innovation lifecycle from idea to market;• Technological trends, breakthroughs, and grand challenges;• Technological change and its implications for economy, policy-making, and society;• Corporate innovation management;• Human capital in STI; and many others.The target audience of the journal comprises research scholars, university professors, postgraduates, policy-makers, business people, the expert community, and others who are interested in S&T and innovation analyses, foresight studies, and policy issues. The journal is included into the 1st quartile (Q1) of the Scopus

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