Wangari Maathai Institute for Peace and Environmental Studies, University of Nairobi
Abstract
Sin stocks are of increased interest since more and more investors and fund managers avoid them whileintegrating social screening with their investment decisions. As a reflection of social norms, sociallyresponsible investing has become a niche of its own in determining investors’ portfolio decisions in the pastdecade. The study adopted an explanatory research design with the population consisting of all firms listen inthe NSE. The sample of the study involved the 20 firm that make up the NSE index. Secondary data usedsecondary data sources in gathering data for analysis which was done using the Statistical Package forSocial Sciences (SPSS version 20) to generate the descriptive statistics and also to generate inferentialresults. T-Tests used to check whether the mean returns of Sin stock differ from the mean returns of non sinstocks. Regression analysis done showed that the type of firm that is either sinstock or non sinstock have apositive and significant relationship with return. T-test statistics indicate that capital gains for sinstocks werehigher than that of non sinstocks. Dividends of nonsinstocks, were slightly lower than that of sinstocks. Fromthe given results, it is evident to conclude that sinstocks have a higher capital gain, return and dividends thanin nonsinstocks
