Graduation Year


Date of Submission


Document Type

Campus Only Senior Thesis

Degree Name

Bachelor of Arts



Reader 1

Darren Filson

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2020 Jonathan D Levine


Using data from 52 activist short reports released between 2011 and 2018, I conducted an event study to calculate the cumulative abnormal returns seen when an activist short report is released. I then obtained financial indicators from WRDS Financial Ratio Suite, representing the financial soundness, profitability, liquidity, value, and capitalization of a targeted company. I tested to see whether certain financial indicators affect how susceptible targeted companies are to increased negative cumulative returns. I found that a targeted company’s negative CAR (-10,10) are highly correlated with levels of financial soundness, value, and capitalization, with liquidity and profitability not having significance. Additionally, I found that only one activist firm saw significantly different negative CARs when controlling for the financial characteristics of the target.

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