Honors Theses


College of Business


Department of Finance and Economics


Bachelor of Arts (B.A.)

Document Type

Honors Thesis


While prior equity performance research analyzes portfolio characteristics using multi-factor models, portfolio groups are typically utilized to explain average returns. Instead, I explore annual firm-level data to compare with annual percentage changes in firm characteristics, emphasizing model predictive power and individual variation. My analyses result in a significant link between individual firm equity returns with percentage changes in total assets, book-to-market ratios, current ratios, and shares outstanding, in addition to historical returns and average market returns. My findings affirm prior work illustrating the importance of profitability, size, liquidity, momentum, and market returns, though I observe minimal evidence of the importance of investment in capital expenditures. I also perform these analyses at the industry level and note differences across industries, including the cyclical nature of business equipment and consumer durables industries in contrast to the utilities and energy sectors. Overall, I contribute to the understanding of corporate characteristics and equity performance.

Publication Date


First Advisor

Blank, Brian

Second Advisor

France, Stephen L.

Third Advisor

Elder, Anastasia