A COMPARATIVE STUDY OF THE RETURNS OF QUOTED SIN AND NON SIN STOCKS AT THE NAIROBI SECURITIES EXCHANGE

Abstract

Sin stocks are of increased interest 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’ portfolio 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 sources 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 stock 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 sinstocks 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.