A comparative study of the returns of quoted sin and non sin stocks at the Nairobi securities exchange
Date
2014Author
ondigo, Herick
Njeru, Paul
Chirchir, Dan
Language
enMetadata
Show full item recordAbstract
Sin stocks are of increased intere
st since more and more investors and fund managers avoid
them while integrating social screening with their investment decisions. As a reflection of social norms,
socially responsible investing has become a niche of its own in determining investors’ portfo
lio decisions
in the past decade. The study adopted an explanatory research design with the population consisting of all
firms listen in the NSE. The sample of the study involved the 20 firm that make up the NSE index.
Secondary data used secondary data so
urces in gathering data for analysis which was done using the
Statistical Package for Social Sciences (SPSS version 20) to generate the descriptive statistics and also to
generate inferential results. T
-
Tests used to check whether the mean returns of Sin s
tock differ from the
mean returns of non sin stocks. Regression analysis done showed that the type of firm that is either
sinstock or non sinstock have a positive and significant relationship with return. T
-
test statistics indicate
that capital gains for s
instocks were higher than that of non sinstocks. Dividends of nonsinstocks, were
slightly lower than that of sinstocks. From the given results, it is evident to conclude that sinstocks have a
higher capital gain, return and dividends than in nonsinstocks
Citation
ondigo, Herick., Njeru, Paul and Chirchir, Dan (2014). A comparative study of the returns of quoted sin and non sin stocks at the Nairobi securities exchange. AIBUMA 5th annual conference, held on 11 th, July 2015, University of Nairobi, school of business, Lower Kabete Campus.Publisher
University of Nairobi