Proceedings of The International Conference on Environmental and Technology of Law, Business and Education on Post Covid 19, ICETLAWBE 2020, 26 September 2020, Bandar Lampung, Indonesia

Research Article

Sin Stocks in Various Litigation Risk: A Case Study in 14 Countries

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  • @INPROCEEDINGS{10.4108/eai.26-9-2020.2302679,
        author={Iis  Nurasiah and Nugraha  Nugraha and Disman  Disman and Rozmita Dewi Yuniarti},
        title={Sin Stocks in Various Litigation Risk: A Case Study in 14 Countries},
        proceedings={Proceedings of The International Conference on Environmental and Technology of Law, Business and Education on Post Covid 19, ICETLAWBE 2020, 26 September 2020, Bandar Lampung, Indonesia},
        publisher={EAI},
        proceedings_a={ICETLAWBE},
        year={2020},
        month={12},
        keywords={litigation risk rule of law stock return sin stock return sin industry},
        doi={10.4108/eai.26-9-2020.2302679}
    }
    
  • Iis Nurasiah
    Nugraha Nugraha
    Disman Disman
    Rozmita Dewi Yuniarti
    Year: 2020
    Sin Stocks in Various Litigation Risk: A Case Study in 14 Countries
    ICETLAWBE
    EAI
    DOI: 10.4108/eai.26-9-2020.2302679
Iis Nurasiah1,*, Nugraha Nugraha2, Disman Disman2, Rozmita Dewi Yuniarti2
  • 1: Universitas Bina Bangsa, Serang, Indonesia
  • 2: Universitas Pendidikan Indonesia, Bandung, Indonesia
*Contact email: buiisnurasiah@gmail.com

Abstract

The capital market has an important role for the economy of a country with stock as the most important instrument. One of the most interesting stock is the sin stock because it provides a fairly high return compared to other stocks. However, the existence of the sin stock is considered contrary to a social norm, especially legal norm. In this study, we will examine whether there are differences in sin stock returns in 3 different litigation risk groups using the rule of law as the indicator. This type of study is descriptive with a quantitative approach. The number of samples was 63 stocks from 14 countries with an observation period of 21 years, from 2000 to 2020. To test the hypothesis, was using the Kruskal Wallis test and followed by the Man Whitney test as the post hoc test. The test results show that there are differences in sin stock returns in 3 different litigation risk groups, namely high, middle, and low in 14 countries. A significant difference occurs between low and medium litigation risk as well as between low and high. Meanwhile, there is no difference between medium and high.