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

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Research on the Influence of Covid-19 on U.S. Business Service Industry Based on Fama-French Five Factor Model

Authors
Xuecheng Dai1, *,a, †, Huizhu Jin2, *, b, †, Yuchen Tian3, *, c, †, Xiaohan Zhu4, *, d, †
1Faculty of Business and Economics, The University of Hong Kong, Hong Kong 999077, China
2Faculty of Economics, Renmin University of China, Beijing 100872, China
3School of Finance, Capital University of Economics and Business, Beijing 100070, China
4Division of Business and Management, Beijing Normal University – Hong Kong Baptist University United International College, Zhuhai 519087, China
†

These authors contributed equally.

*Corresponding author. Email: a u3560297@connect.hku.hk
Corresponding Authors
Xuecheng Dai, Huizhu Jin, Yuchen Tian, Xiaohan Zhu
Available Online 15 December 2021.
DOI
10.2991/assehr.k.211209.065How to use a DOI?
Keywords
Fama-French Model; Covid-19; Business service; U.S. stock market
Abstract

The outbreak of COVID-19 has had a huge impact on the economy of various industries. The volatility of the stock market was exacerbated by the instability of economic activities, which led to the U.S. stock market experiencing four meltdowns in March 2020. Future economic trends are linked to the impact of the epidemic. Therefore, it is reasonable to assess the extent of the impact of the epidemic on the industry. This paper aims to analyze the market changes in the business service industry before and during the epidemic, based on the Fama-French five factor model. Data collected from the Kenneth R. French-Data Library were used to make a multiple linear regression analysis of the business service industry in the US. Data from 2019.3 to 2020.2 have been selected as the data before the epidemic and 2020.3 to 2021.2 as the data during the epidemic. The results indicate that before and during the epidemic, βMKT increased, βSMB was always insignificant. βHML changed from significant to insignificant, and βRMW and βCMA changed from insignificant to significant. After analysis, companies with weak profitability or aggressive investments are worth investing in after the epidemic.

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
978-94-6239-483-4
ISSN
2352-5428
DOI
10.2991/assehr.k.211209.065How 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

risenwbib
TY  - CONF
AU  - Xuecheng Dai
AU  - Huizhu Jin
AU  - Yuchen Tian
AU  - Xiaohan Zhu
PY  - 2021
DA  - 2021/12/15
TI  - Research on the Influence of Covid-19 on U.S. Business Service 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  - 388
EP  - 392
SN  - 2352-5428
UR  - https://doi.org/10.2991/assehr.k.211209.065
DO  - 10.2991/assehr.k.211209.065
ID  - Dai2021
ER  -