Date of Award

8-2020

Degree Type

Report

Degree Name

Master of Science (MS)

Department

Economics and Finance

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.

Included in

Economics Commons

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