The United States automobile industry has been a staple in the economy for over a century. However, the auto industry has come upon hard times, two of the Big 3 required government aid within the last decade. The purpose of this thesis is to take an in depth look towards when innovation will take place in the industry, primarily looking towards whether or not recessionary times spur innovation. The hypothesis is that there will be a negative correlation between recessions and the amount of innovation within the industry. There were multiple problems with multicollinearity throughout the regression analyses that were run in this study. Ultimately there was one significant variable found in three regressions, this being the price of crude oil. The null hypothesis was neither proved nor disproved in this study.
The use of business credit has become deeply-rooted within the majority of all business in the United States Economy. Proper accounts receivable management aids in the primary goal of any business, which is to return a profit. If a firm’s accounts receivable management is inefficient, and credit extended is unable to be collected, a bad debt expense is incurred and the company loses money. The necessity for an efficient system of accounts receivable management becomes even more important during recessionary downturns as all firms endure a tightening of capital available within the economy. This thesis will analyze the impact of the recession on accounts receivable, and how firms utilize different collection techniques to avoid bad debt expenses.
This thesis compares the market response to bidding banks of a merger in an expansionary period and a recessionary period upon the announcement of that merger. Bidding banks tend to see negative gains upon announcement of a merger. With the recent financial crisis, this thesis hypothesizes that in a recessionary period bidding banks will experience more negative gains than in an expansionary period due to the market's risk aversion during an economic recession and the lack of shareholder wealth maximization by management. Twenty-three bidding banks are examined to gauge the market's response to the bidding banks upon the announcement of a merger. To conduct this study, two methodologies are applied: Tobin's q and the Capital Asset Pricing Model. The results do not uphold the hypothesis showing no enhanced losses to bidding banks in the recession period. This thesis attempts to see if a recessionary period affects the way the market responds to bank mergers.