Using Fama-French Five-factors Model to Analyze the Impact of COVID-19 on U.S. Medical and Health Industries
These authors contributed equally.
- 10.2991/assehr.k.211209.333How to use a DOI?
- Fama-French Model; Covid-19; health; U.S. stock market
Asset pricing theory is one of the most important topics in financial economics. It attempts to explain the asset price or value paid in the future under uncertain conditions. This paper aims to analyze the pharmaceutical market before and after the outbreak of the covid-19 epidemic and explore its possible causes. Then, it studied the coefficients and significance of the two periods before and after the epidemic in detail. And then, these values are analyzed and discussed, and some possible reasons for the differences are given. To be specific, it is studied by using multiple linear regression to analyze the Fama-French five factor model in the health-related industry, which shows the results that the performance of in the health area is more affected by the pandemic, while medical equipment area and drug area are less affected during the covid-19. Overall, the study suggests the 5-factor model shows the outbreak of covid-19 did not benefit the health-related industry. The pharmaceutical industry’s demand itself is based on rigid demand, and the medical consumption corresponds to the real clinical demand. The growth core of the medical industry is still technological progress based on the upgrading of patient demand. Therefore, if the pharmaceutical market wants to get long-term development opportunities, the most important thing is to polish products, grasp the development trend of the industry, use the Internet to improve marketing skills and services and pay attention to the cultivation of employees’ professional skills.
- © 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 - Chuyan Wang AU - Zichun Wu AU - Yi Yang PY - 2021 DA - 2021/12/15 TI - Using Fama-French Five-factors Model to Analyze the Impact of COVID-19 on U.S. Medical and Health Industries BT - Proceedings of the 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021) PB - Atlantis Press SP - 2038 EP - 2043 SN - 2352-5428 UR - https://doi.org/10.2991/assehr.k.211209.333 DO - 10.2991/assehr.k.211209.333 ID - Wang2021 ER -