Date of Submission
Campus Only Senior Thesis
Bachelor of Arts
© 2022 Vasu Rai
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.
Rai, Vasu, "Cash Flows Metrics as Predictors for Stock Returns in Different Volatility Environments" (2022). CMC Senior Theses. 2985.
This thesis is restricted to the Claremont Colleges current faculty, students, and staff.