Abstract
The film industry operates under conditions of great uncertainty, which makes it very important for producers and production companies to understand which factors affect profitability. While previous research has explored the effect the total budget has on financial performance, very few have looked into the effect of the budget's allocation. This study aims to explore how increased budget allocation towards below-the-line costs affects return on investment. This study employs OLS, Lasso Regression, and Random Forest modeling to explore the relationship between below-the-line costs measured (using award nominations as a proxy) and return on investment for the film. The findings suggest that indicators/signals of technical quality, typically associated with higher below-the-line spending, are associated with higher return on investment, whereas higher budgets are associated with lower ROI
Advisor
Huiting, Tian
Second Advisor
Drew, Pasteur
Department
Business Economics; Statistical and Data Sciences
Recommended Citation
Bovich, Stuart, "Making A More Desirable Film: How Increasing the Budget Allocated Towards Below-the-Line Costs Affects Return on Investment" (2026). Senior Independent Study Theses. Paper 13307.
https://openworks.wooster.edu/independentstudy/13307
Keywords
Film, Movie, ROI
Publication Date
2026
Degree Granted
Bachelor of Arts
Document Type
Senior Independent Study Thesis
© Copyright 2026 Stuart Bovich