The value of Saints and the price of Sin

© 2014 Elsevier B.V. Using firms in the MSCI KLD 400 as exemplars of virtuous firms (the “Saints“), and firms in the “Triumvirate of Sin“ - alcohol, tobacco and gaming - we utilize a modification of the Feltham and Ohlson (1995) valuation model and quantile regressions to estimate “Saint premiums“ a...

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Main Authors: Koh, S., Durand, Robert, Limkriangkrai, M.
Format: Journal Article
Published: Elsevier B.V 2015
Online Access:http://www.elsevier.com/
http://hdl.handle.net/20.500.11937/42074
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author Koh, S.
Durand, Robert
Limkriangkrai, M.
author_facet Koh, S.
Durand, Robert
Limkriangkrai, M.
author_sort Koh, S.
building Curtin Institutional Repository
collection Online Access
description © 2014 Elsevier B.V. Using firms in the MSCI KLD 400 as exemplars of virtuous firms (the “Saints“), and firms in the “Triumvirate of Sin“ - alcohol, tobacco and gaming - we utilize a modification of the Feltham and Ohlson (1995) valuation model and quantile regressions to estimate “Saint premiums“ and “Sinner discounts“. For firms followed by sell-side analysts, the Saint premium is, on average, $5.77 (a 19.2% premium over the share price) and the Sinner discount is, on average, $3.91 (a discount of 32.1% of the share price). The evidence supports the notion that CSR creates shareholder value. Practices contrary to social norms destroy value.
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publishDate 2015
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spelling curtin-20.500.11937-420742017-09-13T14:22:13Z The value of Saints and the price of Sin Koh, S. Durand, Robert Limkriangkrai, M. © 2014 Elsevier B.V. Using firms in the MSCI KLD 400 as exemplars of virtuous firms (the “Saints“), and firms in the “Triumvirate of Sin“ - alcohol, tobacco and gaming - we utilize a modification of the Feltham and Ohlson (1995) valuation model and quantile regressions to estimate “Saint premiums“ and “Sinner discounts“. For firms followed by sell-side analysts, the Saint premium is, on average, $5.77 (a 19.2% premium over the share price) and the Sinner discount is, on average, $3.91 (a discount of 32.1% of the share price). The evidence supports the notion that CSR creates shareholder value. Practices contrary to social norms destroy value. 2015 Journal Article http://hdl.handle.net/20.500.11937/42074 10.1016/j.pacfin.2014.10.003 http://www.elsevier.com/ Elsevier B.V restricted
spellingShingle Koh, S.
Durand, Robert
Limkriangkrai, M.
The value of Saints and the price of Sin
title The value of Saints and the price of Sin
title_full The value of Saints and the price of Sin
title_fullStr The value of Saints and the price of Sin
title_full_unstemmed The value of Saints and the price of Sin
title_short The value of Saints and the price of Sin
title_sort value of saints and the price of sin
url http://www.elsevier.com/
http://hdl.handle.net/20.500.11937/42074