Proceedings of the 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021)

U.S. Medical-related Industry Under Covid-19: Impacts and Reflections Based on Fama-French Model

Authors
Yuqi He1, , Qijing Ma2, *, , Ziying Xiao3,
1Smeal College of Business, Penn State University, State College 16803, USA
2Department of Economic, University of California San Diego, La Jolla 92093, USA
3School of Management, Shandong University, Jinan 250100, China

These authors contributed equally.

*Corresponding author. Email: qim018@ucsd.edu
Corresponding Author
Qijing Ma
Available Online 15 December 2021.
DOI
10.2991/assehr.k.211209.111How to use a DOI?
Keywords
Fama-French Model; U.S. stock market; Covid-19; Medical-related industry
Abstract

As a once-in-a-century black swan event, the global spread of the COVID-19 caused severe economic and social impacts. It made the market recognize the significant value of medical-related companies. During this epidemic, the medical-related industries demonstrated their ability to cope with such large-scale health crises, boosting global capital markets. Therefore, a study of the U.S. medical-related industries has implications for the capital markets. Based on the Fama-French multi-factor model, this study conducts a comparative analysis of the differences before and after the COVID-19 outbreak. It uses multiple linear regressions to conduct descriptive statistics on the returns of each factor for the health, medical equipment and drugs sub-sectors to study the impact of the COVID-19 on the returns of medical-related industries. The results indicate that the COVID-19 gave some opportunities to the health and medical equipment sectors. Still, the overall market was less volatile and did not significantly impact due to government controls, and investors preferred to choose smaller companies with higher returns. It is clear that for the capital market, medical-related industries are important to stabilize society and promote economic development and deserve long-term support and effective regulation.

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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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.211209.111
ISSN
2352-5428
DOI
10.2991/assehr.k.211209.111How to use a DOI?
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.

Cite this article

TY  - CONF
AU  - Yuqi He
AU  - Qijing Ma
AU  - Ziying Xiao
PY  - 2021
DA  - 2021/12/15
TI  - U.S. Medical-related Industry Under Covid-19: Impacts and Reflections Based on Fama-French Model
BT  - Proceedings of the 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021)
PB  - Atlantis Press
SP  - 678
EP  - 683
SN  - 2352-5428
UR  - https://doi.org/10.2991/assehr.k.211209.111
DO  - 10.2991/assehr.k.211209.111
ID  - He2021
ER  -