Graduation Year


Date of Submission


Document Type

Campus Only Senior Thesis

Degree Name

Bachelor of Arts



Reader 1

Professor Magilke

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© 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.

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