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

Yuqi He; Qijing Ma; Ziying Xiao

doi:10.2991/assehr.k.211209.111

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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.211209.111 How 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.
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.211209.111 How to use a DOI?
Open Access: This is an open access article under the CC BY-NC license.

Cite this article

ris enw bib

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  -

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