Graduation Year


Date of Submission


Document Type

Campus Only Senior Thesis

Degree Name

Bachelor of Arts



Reader 1

Murat Binay

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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.

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