Date of Award
8-2020
Degree Type
Report
Degree Name
Master of Science (MS)
Department
Economics and Finance
Committee Chair(s)
Tyler Brough
Committee
Tyler Brough
Committee
Todd Griffith
Committee
Benjamin Blau
Abstract
In September 2016, Wells Fargo Company was fined a large amount of money due to its employees opening unauthorized accounts and credit cards under customer’s names. This paper examines the effects of the lawsuit announcement on the stock market as it pertains to finance, insurance, and real estate firms. The analysis will be completed using the cumulative abnormal returns (CARs) and various control variables through univariate and multivariate tests. The results of these tests show that the markets did not lose confidence or trust in banks. Instead, the Wells Fargo scandal generated positive CARs for other banks on the day of the lawsuit announcement.
Recommended Citation
Christensen, Heather, "Banking Scandals and Abnormal Cumulative Returns: An Analysis of the Wells Fargo Fraud Scandal" (2020). All Graduate Plan B and other Reports, Spring 1920 to Spring 2023. 1478.
https://digitalcommons.usu.edu/gradreports/1478
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