Does military leadership regulate sin investments? Evidence from property/casualty insurance industry

Chen Cai and Jinjing Wang

Finance Research Letters, 2023, vol. 58, issue PC

Abstract: With a novel dataset of property/casualty (P/C) insurance companies’ sin investments- holdings of bonds and stocks issued by companies involved in producing alcohol, tobacco, and gaming, we find that the presence of military leadership strengthens insurance companies’ adherence to social norms and discourages portfolio allocation to sin investments, especially sin bonds. The reduction effect is more pronounced during the recent financial crisis when insurance companies are enticed to sacrifice social norms for financial gains. Our findings offer valuable insights into socially responsible investing by institutional investors.

Keywords: Military; Leadership; Sin investments; Socially responsibility investing (search for similar items in EconPapers)
JEL-codes: D71 G11 G22 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1544612323008668
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:58:y:2023:i:pc:s1544612323008668

DOI: 10.1016/j.frl.2023.104494

Access Statistics for this article

Finance Research Letters is currently edited by R. Gençay

More articles in Finance Research Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().