Philosophy:Sin industry
Sin industries are commercial activities which, while legal, are often considered to be immoral, unethical or harmful. They include industries such as the alcohol, tobacco, weapons, gambling and sex industries.[1][2] The term is used within the investment industry and stocks in such companies are known as sin stocks.[3]
Investing in sin stocks can be viewed as the opposite strategy to investment based on environmental, social, and governance (ESG) principles. There is some evidence that sin stocks may outperform stocks in other types of companies; however, these results have been attributed to statistical biases, rather than any inherent advantage of 'sin'.[4][5][6][7] Recent evidence also suggests that the magnitude of the sin-stock premium may vary across religious contexts, with stronger abnormal returns reported in countries where Abrahamic religious norms are more prevalent and weaker or negative effects in atheist and non-Abrahamic settings.[8] Seemingly paradoxically, companies in 'sin' sectors may have higher ratings in the social aspects of ESG than other comparable companies.[1]
See also
References
- ↑ 1.0 1.1 Du, Linda Y. L.; Sun, Jianfei (2023-07-01). "Washing away their stigma? The ESG of "Sin" firms". Finance Research Letters 55. doi:10.1016/j.frl.2023.103938. ISSN 1544-6123. https://www.sciencedirect.com/science/article/pii/S1544612323003100.
- ↑ Lohia, Rajani (June 25, 2025). "Top Sin Stocks for Savvy Investors: Profiting From the Unconventional". https://www.nasdaq.com/articles/top-sin-stocks-savvy-investors-profiting-unconventional.
- ↑ Kenton, Will (April 14, 2022). "Sin Stock: What it is, How it Works, Pros and Cons" (in en). https://www.investopedia.com/terms/s/sinfulstock.asp.
- ↑ Hong, Harrison; Kacperczyk, Marcin (2009-07-01). "The price of sin: The effects of social norms on markets". Journal of Financial Economics 93 (1): 15–36. doi:10.1016/j.jfineco.2008.09.001. ISSN 0304-405X. https://www.sciencedirect.com/science/article/pii/S0304405X09000634.
- ↑ Marsh, Hannah (16 June 2015). "Does it pay to be bad - why 'investing in sin' pays" (in en). https://www.london.edu/think/does-it-pay-to-be-bad.
- ↑ Marriage, Madison (13 September 2015). "Research shows the wages of sin turn out to be a bit mediocre". https://www.ft.com/content/1abc89b4-58a6-11e5-a28b-50226830d644.
- ↑ Adamsson, Hampus; Hoepner, Andreas G. F. (2015). "The 'Price of Sin' Aversion: Ivory Tower Illusion or Real Investable Alpha?" (in en). SSRN Electronic Journal. doi:10.2139/ssrn.2659098. ISSN 1556-5068. http://www.ssrn.com/abstract=2659098.
- ↑ Sovbetov, Ihlas (2026). "Financial Price of Sin Stocks Across Religions". Journal of Business Ethics 204 (2): 221–242. doi:10.1007/s10551-025-06072-z.
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