The Research on the Impact of Covid-19 on U.S. Resource Stock Market

Jiatong Sun; Bijia Yang; Dongping Yu; Lingfeng Zhang

doi:10.2991/assehr.k.211209.228

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The Research on the Impact of Covid-19 on U.S. Resource Stock Market

Authors

Jiatong Sun¹^{, *}^{, †}, Bijia Yang²^{, †}, Dongping Yu³^{, †}, Lingfeng Zhang⁴^{, †}

¹King’s Business School, King’s College London, London WC2R 2LS, United Kingdom

²Faculty of Natural, Mathematical & Engineering Sciences, King’s College London, WC2R 2LS, United Kingdom

³Institute of economics, Sichuan Agricultural University, Chengdu 611130, China

⁴Big data management and Application, Beijing Information Science and Technology University, Beijing 100096, China

^†

These authors contributed equally.

^*Corresponding author. Email: K19051365@kcl.ac.uk

Corresponding Author

Jiatong Sun

Available Online 15 December 2021.

DOI: 10.2991/assehr.k.211209.228 How to use a DOI?
Keywords: COVID-19; CAPM Model; Fama-French Five-factor Model
Abstract: 2020 is a challenging year for humans because the whole world was under attack of COVID-19, which is considered the most transmissible virus throughout human history. This pandemic has caused an unprecedented negative impact on people’s lives and the world’s economy. In addition, the impact of the pandemic on the stock market is nonnegligible, as well. This article is mainly centered on the impact of COVID-19 on the stock market of four specific resource industries, which are Coal, Oil, Mines, and Gold, by using mathematical models. The models include the CAPM model, Fama-French Three-factor model, and Fama-French Five-factor model. To obtain the impact of the COVID-19, by using the data of the expected return (R_i) of the industries, a regression analysis is performed on each factor of the Fama-French Five-factor model and the expected return of the stock market of the four industries before and after the epidemic, and obtain the impact of the epidemic on the stock market of the industry by observing the performance of the factors. The results of the multiple linear regression indicate that the epidemic has the greatest impact on the stock market of the gold industry because the four factors of the gold industry have undergone significant changes before and after the epidemic. For the Coal and the Oil industry, only the factor of HML can present the impact of the epidemic. COVID-19 contributes the least impact for the mines industry because whether the factors are significant does not change.
Open Access: This is an open access article under the CC BY-NC license.

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Volume Title: Proceedings of the 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021)
Series: Advances in Economics, Business and Management Research
Publication Date: 15 December 2021
ISBN: 10.2991/assehr.k.211209.228
ISSN: 2352-5428
DOI: 10.2991/assehr.k.211209.228 How to use a DOI?
Open Access: This is an open access article under the CC BY-NC license.

Cite this article

ris enw bib

TY  - CONF
AU  - Jiatong Sun
AU  - Bijia Yang
AU  - Dongping Yu
AU  - Lingfeng Zhang
PY  - 2021
DA  - 2021/12/15
TI  - The Research on the Impact of Covid-19 on U.S. Resource Stock Market
BT  - Proceedings of the 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021)
PB  - Atlantis Press
SP  - 1402
EP  - 1408
SN  - 2352-5428
UR  - https://doi.org/10.2991/assehr.k.211209.228
DO  - 10.2991/assehr.k.211209.228
ID  - Sun2021
ER  -

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