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Hemline Theory: Testing the Relationship Between Fashion Trends and the Stock Market

Humes, Gabriella Micah

Abstract Details

2021, BBA, Kent State University, College of Business and Entrepreneurship, Ambassador Crawford / Department of Finance.
This thesis examines the hemline theory that was first suggested in 1926 by an economist at Wharton, George Taylor. This theory suggests that trends in hem lengths and stock market movements have a predictive relationship of each other. This thesis investigates the hemline theory by testing for any relationship between hem lengths and overall stock market returns through graphical presentation and regression analysis. Pant length and fashion company stock returns were also examined as additional components in the hemline theory. Hemline data was collected from Vogue magazine archives from 1925 to 2010. Pant length data was also collected from Vogue from 1960 to 2010. Stock return data was collected from the Center for Research in Security Prices from 1926 to 2010. This data was then graphed out by decade. Movements of hem and pant trends and stock returns were then analyzed based on the graphs. Regression analyses were used to empirically test for any correlation between the two variables. This thesis discusses fashion theory, previous studies conducted on the hemline theory, the analysis completed on the data collected, conclusions from the analysis, and areas for future research.
Lindsay Baran, Ph.D (Advisor)
Sara Hume, Ph.D. (Advisor)
Jeremiah Harris, Ph.D. (Committee Member)
Jihyun Vick, Ph.D. (Committee Member)
80 p.

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Citations

  • Humes, G. M. (2021). Hemline Theory: Testing the Relationship Between Fashion Trends and the Stock Market [Electronic thesis or dissertation, Kent State University]. OhioLINK Electronic Theses and Dissertations Center. http://rave.ohiolink.edu/etdc/view?acc_num=ksuhonors1620591215357509

    APA Style (7th edition)

  • Humes, Gabriella. Hemline Theory: Testing the Relationship Between Fashion Trends and the Stock Market. 2021. Kent State University, Electronic thesis or dissertation. OhioLINK Electronic Theses and Dissertations Center, http://rave.ohiolink.edu/etdc/view?acc_num=ksuhonors1620591215357509.

    MLA Style (8th edition)

  • Humes, Gabriella. "Hemline Theory: Testing the Relationship Between Fashion Trends and the Stock Market." Electronic thesis or dissertation, Kent State University, 2021. http://rave.ohiolink.edu/etdc/view?acc_num=ksuhonors1620591215357509

    Chicago Manual of Style (17th edition)