A domino effect can accelerate the spread of financial crises. Some firms, however, show better resistance than others thereby limiting the spread. Effective governance mechanisms enhance the ability of firms to absorb a stock market crisis. In a sample of Société des Bourses Françaises (SBF)...

Purpose: The authors provide evidence for the effects of social norms on corporate governance risk by studying “sin” stocks publicly traded companies involved in producing alcohol, firearms, biotechnology, gambling, military, nuclear power and tobacco. There is a societal norm against...