Proceedings of the 2022 2nd International Conference on Financial Management and Economic Transition (FMET 2022)

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Analysis of Chinese and American Banking Stocks Based on CAPM Model

Authors
Pengfei Sun1, Yuhui Wang2, Yumu Wang3, *
1College of Science, Donghua University, Shanghai, China
2Management School, The University of Sheffield, Sheffield, UK
3School of Social Science, The University of Manchester, Manchester, UK
*Corresponding author. Email: yumu.wang@student.manchester.ac.uk
Corresponding Author
Yumu Wang
Available Online 14 December 2022.
DOI
10.2991/978-94-6463-054-1_63How to use a DOI?
Keywords
CAPM; Chinese; American; Bank stocks
Abstract

With the increased globalization of the economy, the effectiveness of the CAPM model as applied to different economies merits further study. At the same time, with the increased use of the CAPM model in various international financial markets, it is also important to analyze the differences between the financial markets of developing and developed countries based on a fundamental financial theory such as the CAPM model. Based on the CAPM model, this paper randomly selects 20 stocks of each bank of China and the United States to calculate the risk coefficient beta and gives a comparison and analysis of the two according to the obtained data indicators, to understand the two markets. The results firstly show that both Chinese and US bank stocks fit the CAPM model. Secondly, the individual indices of US bank stocks are volatile compared to the stable and balanced data performance in China, implying that freer markets should have more possibilities for more intense financial market volatility. This paper provides evidence for the effectiveness of the CAPM in testing different financial markets. It also provides theoretical and data support for the comparison of differences across financial markets based on the CAPM model.

Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 2022 2nd International Conference on Financial Management and Economic Transition (FMET 2022)
Series
Advances in Economics, Business and Management Research
Publication Date
14 December 2022
ISBN
10.2991/978-94-6463-054-1_63
ISSN
2352-5428
DOI
10.2991/978-94-6463-054-1_63How to use a DOI?
Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Pengfei Sun
AU  - Yuhui Wang
AU  - Yumu Wang
PY  - 2022
DA  - 2022/12/14
TI  - Analysis of Chinese and American Banking Stocks Based on CAPM Model
BT  - Proceedings of the 2022 2nd International Conference on Financial Management and Economic Transition (FMET 2022)
PB  - Atlantis Press
SP  - 578
EP  - 586
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-054-1_63
DO  - 10.2991/978-94-6463-054-1_63
ID  - Sun2022
ER  -