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

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Research of Impact of COVID-19 on Clothing Industry Using Fama-French Five-Factor Model

Authors
Xinrong Ji1, *, †, Keying Li2, †, Zijie Yu3, †
1Nanjing No.1 Middle School, Nanjing, 210004, China
2Dauntsey’s School, Devizes, SN104HE, the U.K.
3Shanghai Weiyu High School, Shanghai, 200231, China
†

These authors contributed equally.

*Corresponding author. Email: ericji@Stanford.edu
Corresponding Author
Xinrong Ji
Available Online 15 December 2021.
DOI
10.2991/assehr.k.211209.164How to use a DOI?
Keywords
Fama-French model; COVID-19; U.S. stock market; Clothing industry
Abstract

As COVID-19 negatively affected the U.S. stock market, the performances of stocks vary from different industries. This research focused on the specific impact of the pandemic on the clothing industry specifically. The study used the Fama-French 5 factor model, which includes two other variables – RMW and CMA based on the Fama-French 3 factor model, including factors of return on the market, size of firms, and book-to-market values, to get the performance of stocks of the clothing industry. The data from a time before COVID-19, which was January 2019, to time during the pandemic, March 2021, is obtained from Kenneth R. French Data Library. The two sets, which are before and during the pandemic, of coefficients of all the five factors and Ri − Rf are calculated using the model and compared with each other. The results show the change in the significance of three factors: value, profitability, and investment, which suggests that the performance of companies in the clothing industry is related to those three variables. In conclusion, investors should be careful with firms with low book-to-market ratios and those with low investments. Additionally, investors need to be cautious with firms that have robust 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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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.211209.164How 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  - Xinrong Ji
AU  - Keying Li
AU  - Zijie Yu
PY  - 2021
DA  - 2021/12/15
TI  - Research of Impact of COVID-19 on Clothing Industry Using 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  - 1007
EP  - 1012
SN  - 2352-5428
UR  - https://doi.org/10.2991/assehr.k.211209.164
DO  - 10.2991/assehr.k.211209.164
ID  - Ji2021
ER  -