Research on the Influence of COVID-19 on Transportation Industry Based on Fama-French Five Factor Model

DOI

10.2991/assehr.k.211209.438How to use a DOI?

Keywords

COVID-19; CAPM; Fama-French five-factor model; Transportation industry

Abstract

Over the years, the Capital Asset Pricing Model (CAPM) has been continuously improved with the efforts of many researchers. In this study, Fama-French five-factor model, which is excellent in estimating the average stock return, is used for regression analysis. Analyzing the performance of the three transportation sectors (automobile industry, aircraft industry and ship industry) in the market during the period of the COVID-19 can judge the impact of the COVID-19 on the transportation industry. In addition, to analyze whether the government’s effective emergency rescue measures issued by various countries help various industries to evade the economic risks brought by COVID-19. The results of this paper show that COVID-19 has indeed had a profound impact on the world transportation industry and economic market. More importantly, three research objects in this study were totally seriously affected by COVID-19. On the whole, due to the social alienation policies issued by various countries, the survival threat to the aircraft industry is the most serious. Even though airlines try to take measures to reduce economic losses, there are still large airlines that cannot support their daily operations in the short term and declare bankruptcy. In conclusion, even the most serious period of the COVID-19 crisis is only a few months, and governments of various countries have also allocated funds for rescue to retain some industries. However, the impact on the world economy cannot be recovered in the short term.

Copyright

© 2021 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article under the CC BY-NC license.

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TY  - CONF
AU  - Chenyang Peng
PY  - 2021
DA  - 2021/12/15
TI  - Research on the Influence of COVID-19 on Transportation Industry Based on Fama-French Five Factor Model
BT  - Proceedings of the 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021)
PB  - Atlantis Press
SP  - 2694
EP  - 2699
SN  - 2352-5428
UR  - https://doi.org/10.2991/assehr.k.211209.438
DO  - 10.2991/assehr.k.211209.438
ID  - Peng2021
ER  -