Date of Submission
Campus Only Senior Thesis
Bachelor of Arts
© 2022 Justin Esters
This paper reviews the adoption of the accounting standard Accounting Standards Codification (ASC) 842, which began requiring public companies to list their total operating leases as a line item on the balance sheet in 2019. I specifically investigate the effects on the transportation industry as it is one of the most lease intensive industries. I hypothesized that this standard would negatively impact company returns and market valuations immediately after activation in 2019. I use the years 2010 - 2018 to compare to 2019 to analyze the immediate impact on transportation companies. My hypothesis is confirmed, and we conclude returns significantly decreased in the first quarter of 2019 for transportation companies.
Esters, Justin, "Impact of ASC 842 on Company Valuations and Returns in the Transportation Industry" (2023). CMC Senior Theses. 3189.
This thesis is restricted to the Claremont Colleges current faculty, students, and staff.