For our Barrett Honors thesis, our team decided to complete the Founders Lab thesis pathway. Founders Lab offers Barrett students the opportunity to spend their year working on developing entrepreneurial ideas into innovative new businesses by designing not only a business model, but the marketing, sales, and financial models of it as well. This team-based thesis/creative project empowers Barrett students to find solutions to a challenge and gain valuable experience launching a new business of their own.

This thesis analyzes the relationship between diversity within U. S. boards of directors and overall firm performance. In the summer of 2020, various political and social movements erupted, fighting against police brutality and racial violence. These events were followed by an influx of diversity, equity, and inclusion (DEI) frameworks across corporate America. It was becoming increasingly clear that diversity within company leadership was lacking. A company’s board of directors, who is responsible for creating value for shareholders, was not an accurate representation of the people it served. First, I will begin by discussing the current state of diversity in corporate boards by discussing reasons firms diversify, benefits and risks of a diverse board, and major barriers to diversification efforts. A main goal of directors is to maximize shareholder return, which prompts the question: is there a financial benefit to having directors of different backgrounds, skills, and perspectives? In the second part of my thesis, I explore the correlation of board compositions and the company’s financial performance through a study of 45 Fortune 500 companies. Previous studies have mixed results; some studies concluded that there is a positive correlation, some found a negative correlation, and others were inconclusive. While the results of my study did not demonstrate that a relationship between firm performance and diversity exists, I want to emphasize that it does not mean that diverse boards do not contribute at all to the success of the board. There are various factors that contributed to my results, but regardless of my findings, I believe that further research of this topic is necessary and will be beneficial for those in corporate governance.

This honors thesis for Barrett, the Honors College at Arizona State University provides an analysis of a leveraged buyout (LBO) of Foot Locker. This thesis serves to demonstrate how a fictional private equity firm would acquire a company through an LBO. The project provides insight onto what private equity firms do, the background of Foot Locker, and an industry analysis on the sector that Foot Locker operates in. The thesis looks to provide a deeper understanding of the fair value of Foot Locker using a discounted cash flow (DCF) analysis, comparable company analysis, and precedent transaction analysis. Included is a pitchbook, the DCF model, and LBO model.

In the 21st century economy, life moves pretty fast, and change is happening all around us. For example, it was common to drive to shopping malls with your friends or family and spend the whole afternoon browsing through hundreds of items until you found the perfect purchase. Or, only a few months ago, the entire world was put on lockdown to stop the spread of COVID-19, which caused a recession when consumers stopped spending as much to start saving. Americans also used to enjoy their loud, gas-guzzling cars and trucks to get them from place to place. Now what changed, and why? The study of economics justifies how we, as human, fundamentally live and make choices every day. As we notice the results of our choices, we may continue to do the same the next day, temporarily go another route, or alter our behavior permanently. This framework presents the concept of innovation. By applying this logic to the business world, I will attempt to analyze and defend why the innovations of e-commerce, COVID-19 vaccines, and electric vehicles were the natural cause of society changing perspective to move forward toward a better tomorrow.