Graduation Year


Date of Submission


Document Type

Campus Only Senior Thesis

Degree Name

Bachelor of Arts



Reader 1

Eric Hughson

Terms of Use & License Information

Terms of Use for work posted in Scholarship@Claremont.

Rights Information

2018 Geno A Quaid


This paper examines the effect on incumbent firms of industries which, Inc. enters. Using event study methodology, this paper tests the returns for incumbent firms on the day Amazon announces entrance into their industry. The paper studies the effects on two portfolios for each industry, a market capitalization weighted and an equally weighted. Each portfolio’s expected return is computed using the market model and then compared to actual returns to find the abnormal return. The results are mixed. Five industry portfolios have significant 1 – day abnormal returns and 2 – day CAR while the six other industries show no significance in either metric. The results prompt a discussion and logic? behind the markets response to Amazon entering new markets. The leading explanation of the industries that saw effects is the time in which Amazon entered.

This thesis is restricted to the Claremont Colleges current faculty, students, and staff.