Graduation Year
2022
Date of Submission
4-2022
Document Type
Campus Only Senior Thesis
Degree Name
Bachelor of Arts
Department
Economics
Reader 1
Michael Gelman
Terms of Use & License Information
Rights Information
© 2022 Vasu Rai
Abstract
This paper investigates the predictive power of Cash Flows with regards to stock returns. I use U.S. equity data from 2002-2021 to create a linear model. I then look at how the magnitude of the coefficient changes in varying volatility regimes and after the 2008 financial crisis. I find that a similar increase in cash flow increases the stock return by a greater amount in low volatility regimes than in higher volatility regimes. I also find that there is not statistically significant difference before and after the global financial crisis.
Recommended Citation
Rai, Vasu, "Cash Flows Metrics as Predictors for Stock Returns in Different Volatility Environments" (2022). CMC Senior Theses. 2985.
https://scholarship.claremont.edu/cmc_theses/2985
This thesis is restricted to the Claremont Colleges current faculty, students, and staff.
