"'Sinful' Industry Returns in the United States", Barra Newsletter, March/April 1992, p1
Topic: Performance Analysis |
Asset Class: Equities
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How differently have companies in "sinful" industries (liquor, tobacco, and gambling) behaved? It seems clear that, under the restraints of this study, those institutions that excluded "sinful" stocks from their selection universe have potentially suffered a return shortfall. This is particularly true for the tobacco and liquor industries since 1985. Return differentials suggest that for managers who decide, or are required by their clients, not to invest in a category of stocks, the importance of constructing an appropriate benchmark becomes quite important to properly distinguish active performance.
Publication:
Authors: BECKERS Stan
