@article{jfe20241221,
author={{Adjei, Frederick and Adjei, Mavis},
title={Obesity Related Stocks Risk and Return},
journal={Journal of Finance and Economics},
volume={12},
number={2},
pages={24--28},
year={2024},
url={https://pubs.sciepub.com/jfe/12/2/1},
issn={2328-7276},
abstract={In the last two decades there has been a significant increase in obesity in the United States of America. In this study, we examine the performance of firms directly related to the obesity trend; fast food restaurants such as McDonalds, soft drink companies such as the Coca-Cola company, and candy manufacturers such as the Hershey¡¯s company. Particularly, we examine the risk-return profiles as well as the Buy-and-Hold Abnormal Returns (BHAR) of these stocks in relation to the economic cycle. We find that junk foods¡¯ stocks have higher monthly returns and are riskier than the average stock. Additionally, junk foods¡¯ stocks report positive abnormal returns, and this return is higher during economic recessions. However, we also find a decline in Sharpe ratios of junk foods¡¯ stocks during recessions, indicating that Junk foods¡¯ stocks offer lower risk-adjusted returns during recessions.},
doi={10.12691/jfe-12-2-1}
publisher={Science and Education Publishing}
}