Empirical Research and Regulatory Reflections on the U.S. Stocks and Pharmaceutical Industry under the COVID-19 Pandemic

DOI

10.2991/978-94-6463-098-5_203How to use a DOI?

Keywords

Fama -French model; New crown epidemic; Pharmaceutical industry

Abstract

Based on the Fama-French three-factor and five-factor models, this article empirically studies the changes in the pharmaceutical industry of the US stock market before and after the epidemic and analyzes the medical-related industry and its three sub-sectors of health care, medical equipment, and pharmaceuticals. The results show the explanatory power of the two models after the epidemic has changed. The overall change in market factors is relatively small. The epidemic has not affected the "small-scale" effect of the US stock pharmaceutical industry, and the market is more ignorant of growth stocks. The book-to-market ratio and investment style factors are redundant. For the sub-industry, the profit factor in the health care industry has become redundant due to the impact of the epidemic, and the growth stocks of the medical equipment industry and the pharmaceutical industry have made significant gains, and they are more speculative after the epidemic. For the government and the capital market, the pharmaceutical industry plays an important role in stabilizing society and promoting economic development and deserves firm and long-term support and effective supervision.

Copyright

© 2023 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Zihao Zhao
PY  - 2022
DA  - 2022/12/27
TI  - Empirical Research and Regulatory Reflections on the U.S. Stocks and Pharmaceutical Industry under the COVID-19 Pandemic
BT  - Proceedings of the 2022 4th International Conference on Economic Management and Cultural Industry (ICEMCI 2022)
PB  - Atlantis Press
SP  - 1808
EP  - 1817
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-098-5_203
DO  - 10.2991/978-94-6463-098-5_203
ID  - Zhao2022
ER  -