Date of Submission
Campus Only Senior Thesis
Bachelor of Arts
© Alexa N Schulten
This paper examines the relationship between firm characteristics and a company’s stock returns surrounding the announcement of the CARES Act. The stock returns included are cumulative abnormal returns calculated for each consumer goods stock in the S&P 500 surrounding March 25th, 2020, the day the CARES Act was passed by the U.S. Senate. The paper includes a cross-sectional ordinary least squares regression that attempts to uncover the empirical determinants of stock price reactions to COVID-19 fiscal stimulus. The findings suggest that financial leverage is highly correlated with cumulative abnormal returns. Whether a company sells consumer staple or consumer discretionary products is also significantly correlated with cumulative abnormal returns.
Schulten, Alexa, "How Do Firm Characteristics Affect Stock Price Reactions to COVID-19 Fiscal Stimulus?" (2022). CMC Senior Theses. 2895.
This thesis is restricted to the Claremont Colleges current faculty, students, and staff.