Graduation Year

2024

Document Type

Campus Only Senior Thesis

Degree Name

Bachelor of Arts

Department

Economics-Accounting

Reader 1

Joshua Rosett

Reader 2

Roberto Pedace

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© 2023 Mihika V Desouza

Abstract

This paper examines the effects of the June 24th, 2022, Supreme Court decision to overturn Roe v. Wade on contraceptive-producing firms. Specifically, I used an event study methodology to examine the abnormal returns during two windows: the information leak (May 3rd) and the actual decision date (June 24th). After running regressions for individual stocks in my contraceptive firm set (M_Pharm), I found that the stocks with the highest t-test significance focused solely on contraceptives in their product offering. This led me to hypothesize that their business models were most significantly impacted by the overturn. I found the cross-sectional t-tests to be more statistically significant for the decision date than the leak date. For the second section portion, I performed regressions to understand how the SCOTUS decision impacted other firms in the connected industries. The contraceptive firms set experienced a more considerable boost in asset turnover and ROA than the other firms in the set. I ran the same tests for ROE; however, they were not statistically significant. Likely due to the variation of total equity between firms in the set.

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