The Nirvana of the US Clothing Industry After COVID-19

Based on the Fama-French Five-Factor Model

DOI

10.2991/assehr.k.211209.366How to use a DOI?

Keywords

Fama-French model; COVID-19; clothing industry; US stock market

Abstract

In 2020, the global spread of COVID-19 has brought a huge impact to the international financial market and destroyed many industries. This paper applies Fama-French five-factor model to analyze the effect of COVID-19 on the clothing industry. Based on the data from Kenneth R. French’s database, this paper selects the daily five-factor data of the US clothing industry. Considering the outbreak point of March 1, 2020 as the dividing line, and take the nine months before (2019.06-2020.02) and during (2020.03-2020.11) as the research object, respectively. The results of the study show that the Fama-French five-factor model has increased its interpretation after COVID-19, and the market factor has changed less. The epidemic has caused small-scale effects in the clothing industry, and investors are more inclined to invest in high book-to-market value ratio stocks. RMW becomes insignificant so that the speculative nature of clothing industry stocks has decreased. The CMA factor is redundant before and after the epidemic. Investors should pay more attention to the companies with small-scale, value stock and good profitability.

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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TY  - CONF
AU  - Ding Gu
PY  - 2021
DA  - 2021/12/15
TI  - The Nirvana of the US Clothing Industry After COVID-19
BT  - Proceedings of the 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021)
PB  - Atlantis Press
SP  - 2231
EP  - 2236
SN  - 2352-5428
UR  - https://doi.org/10.2991/assehr.k.211209.366
DO  - 10.2991/assehr.k.211209.366
ID  - Gu2021
ER  -