Consumer Animosity in Financial Markets

EasyChair Preprint 7384

Abstract

Social norms are known to be influential on investors, and they sometimes even override profit motives. Literature suggests that despite their performance, “sin stocks” are less preferred by institutional investors and covered less by analysts even though they outperform other stocks. In other words, investors pay premiums not to commit any sins. This study takes a similar approach and argues that nationalistic feelings and animosity toward a particular country may also have similar effects on stock markets. Given the ongoing tensions between China and the United States, it will be examined whether Chinese firms trading in US stock markets display patterns similar to sin stocks. It is expected that Chinese firms will suffer from significant discrimination in cases of institutional ownership, analyst coverage, firm valuation, and corporate financing. This paper is a work in progress, and the author welcomes any support for data collection.

Keyphrases: China, Consumer animosity, Cross-listing, Nationalism, United States, financial markets

@booklet{EasyChair:7384,
  author    = {Kemal Cem Soylemez},
  title     = {Consumer Animosity in Financial Markets},
  howpublished = {EasyChair Preprint 7384},
  year      = {EasyChair, 2022}}