Financial Indicators Predictability on Measures of Success During the Covid-19 Pandemic
Open Access
Author:
Calibeo, Elena
Area of Honors:
Finance
Degree:
Bachelor of Science
Document Type:
Thesis
Thesis Supervisors:
Brian Spangler Davis, Thesis Supervisor Brian Spangler Davis, Thesis Honors Advisor J. Randall Woolridge, Faculty Reader
Keywords:
Covid-19 Financial indicators Sharpe Ratio Jensen's Alpha EVA Consumer
Abstract:
This paper evaluated the predictability of financial indicators on measures of success in the context of the COVID-19 pandemic within the consumer discretionary sector. Multiple Regression and Binary Logistic models are utilized to determine the significance of each indicator in predicting success. This study resulted in four financial indicators significantly predicting success for the Sharpe Ratio, Jensen’s Alpha, and Economic Value Added. In the consumer discretionary space, large, undervalued companies with high sustainable growth ratios and less uniqueness were more likely to be successful during the COVID-19 pandemic. This study supports the thesis that financial indicators proven to predict and support financial success measures were applicable and accurate for consumer discretionary companies during the COVID-19 pandemic.
