Research on the Influence of Covid-19 on U.S. Business Service Industry Based on Fama-French Five Factor Model
- 10.2991/assehr.k.211209.065How to use a DOI?
- Fama-French Model; Covid-19; Business service; U.S. stock market
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.
- © 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 - 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 -