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

Using Fama-French Five-factors Model to Analyze the Impact of COVID-19 on U.S. Medical and Health Industries

Authors
Chuyan Wang1, , Zichun Wu2, , Yi Yang3, *,
1Business School, Rutgers University New Brunswick, Piscataway 08854, America
2School of Finance, Hebei University of Economics and Business, Hebei 050062, China
3Faculty of Business, University of Nottingham Ningbo China, Ningbo 315000, China

These authors contributed equally.

*Corresponding author. Email: biyyy14@nottingham.edu.cn
Corresponding Author
Yi Yang
Available Online 15 December 2021.
DOI
10.2991/assehr.k.211209.333How to use a DOI?
Keywords
Fama-French Model; Covid-19; health; U.S. stock market
Abstract

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.

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.211209.333How 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

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  -