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

The Impact of COVID-19 on Medical-related American Stocks

Authors
Tongke Wei1, , Yuheng Wu2, *, , Xiaoyu Yang3,
1Business School, Manchester Metropolitan University, Manchester, M15 6BH, UK
2School of Social Science, University of Manchester, Manchester, M13 9PL, UK
3School of Mathematical Sciences, Queen Mary University of London, London, E1 4NS

These authors contributed equally.

*Corresponding author. Email: yuheng.wu@student.manchester.ac.uk
Corresponding Author
Yuheng Wu
Available Online 26 March 2022.
DOI
10.2991/aebmr.k.220307.334How to use a DOI?
Keywords
COVID-19; Healthcare; US stock market; Medical Equipment; Drugs
Abstract

Since the outbreak of COVID-19 in 2020, there has been a very serious impact on the global economy. In this paper, the period from May 2019 to February 2020 was selected as the pre-epidemic, and the period from March to December 2020 was selected as the mid-epidemic. The stocks of the US healthcare sector are analyzed in these two time periods, respectively. Fama-French five-factor model is used to analyze the risks and returns of investing in the Health, Drugs, and Medical Equipment sectors. Based on the data obtained from multiple linear regressions, it was concluded that all healthcare-related sectors were affected by the epidemic to varying degrees. Some of the significant factors became insignificant in both the healthcare and medical equipment sectors. At the same time, smaller companies in the drugs industry were also affected to a greater extent than larger ones, and the vulnerability reflected in the pandemic also gave a significant impetus to the overall medical-related industries.

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.

Download article (PDF)

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.220307.334How 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  - Tongke Wei
AU  - Yuheng Wu
AU  - Xiaoyu Yang
PY  - 2022
DA  - 2022/03/26
TI  - The Impact of COVID-19 on Medical-related American Stocks
BT  - Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)
PB  - Atlantis Press
SP  - 2035
EP  - 2040
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.220307.334
DO  - 10.2991/aebmr.k.220307.334
ID  - Wei2022
ER  -