Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)

Empirical Analysis on the Applicability of Two Capital Asset Pricing Models to New Energy Vehicle Stocks

Authors
Yunfei Wu1, *, Heng Xiao2
1Department of statistics, the Zhongnan University of Economic and Law, Wuhan, Hubei, China
2Department of finance, the Guangdong University of Foreign Studies, Guangzhou, Guangdong, China
Corresponding Author
Yunfei Wu
Available Online 26 March 2022.
DOI
10.2991/aebmr.k.220307.214How to use a DOI?
Keywords
CAPM model; Fama-French three-factor model; new energy vehicle stock
Abstract

For the policies of many countries aimed at controlling carbon dioxide emissions, the new energy vehicle industry has developed rapidly. However, after the impact of COVID-19, many industries have been cleared out of the national list and the new energy vehicle industry has been left behind, and a large number of national funds have been used for new energy vehicles. As a new and special industry, the stock of new energy vehicles may differ the overall a-share market shares from the applicability of asset pricing model. This paper conducts an empirical analysis on the applicability of CAPM model and Fama-French three-factor model in the stock market of new energy vehicle industry. The study found that the three-factor model’s applicability is better than the CAPM model, and scale factor and book-to-value ratio factor have a certain reference significance, while market factor still has good reference significance, which amount of variation is greater than the rate of yield. In addition, in China’s new energy vehicle stocks, there is a small-scale effect, and the medium and high book value ratio of stocks show a certain book value ratio benefit.

Copyright
© 2022 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 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)
Series
Advances in Economics, Business and Management Research
Publication Date
26 March 2022
ISBN
978-94-6239-554-1
ISSN
2352-5428
DOI
10.2991/aebmr.k.220307.214How to use a DOI?
Copyright
© 2022 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  - Yunfei Wu
AU  - Heng Xiao
PY  - 2022
DA  - 2022/03/26
TI  - Empirical Analysis on the Applicability of Two Capital Asset Pricing Models to New Energy Vehicle Stocks
BT  - Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)
PB  - Atlantis Press
SP  - 1301
EP  - 1305
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.220307.214
DO  - 10.2991/aebmr.k.220307.214
ID  - Wu2022
ER  -