Proceedings of the 2022 3rd International Conference on E-commerce and Internet Technology (ECIT 2022)

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Metaverse and Stock Market—A Study Based on Fama-French Model

Authors
Zhitong Chen1, *
1Social Sciences Division, Economics Department, Duke Kunshan University, Suzhou, China
*Corresponding author. Email: zc145@duke.edu
Corresponding Author
Zhitong Chen
Available Online 10 November 2022.
DOI
10.2991/978-94-6463-005-3_74How to use a DOI?
Keywords
Asset pricing; Metaverse; Stock price; Fama and French five factor model; Financial market; Technology companies
Abstract

Stock prices reflect the value of anticipated future profits of companies. Since business cycle conditions affect the future profitability of firms, expectations about the business cycle will impact the stock value of firms. Recently, the popularity of Metaverse in the global financial market has been increasing. One of the novel features of this paper is to incorporate a link between stock price movements and Metaverse. By implementing the three-factor and five-factor Fama-French model, the author selects different industries to better study the impact of the Metaverse in different industries in the U.S. stock market. The data is derived from the New York Stock Exchange, the American Stock Exchange, and the Nasdaq Stock Market. The results indicate that Metaverse has affected the stock price of technology companies, especially the monopolies of the technology related companies. Moreover, the emergence of Metaverse has influenced the stock price of the real estate industry. Not only the worldwide Internet giants such as Meta, Tencent, NetEase, ByteDance, etc. are taking actions to seize the great opportunities of Metaverse, but more small and medium-sized enterprises are following the trend. Undoubtedly, Metaverse has brought an innovative business model to the financial market and the world. It hopes that the results of this paper would help investors better understand the stock market of both technology and Meta related companies with the storm of the Metaverse.

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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Volume Title
Proceedings of the 2022 3rd International Conference on E-commerce and Internet Technology (ECIT 2022)
Series
Atlantis Highlights in Engineering
Publication Date
10 November 2022
ISBN
978-94-6463-005-3
ISSN
2589-4943
DOI
10.2991/978-94-6463-005-3_74How to use a DOI?
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.

Cite this article

risenwbib
TY  - CONF
AU  - Zhitong Chen
PY  - 2022
DA  - 2022/11/10
TI  - Metaverse and Stock Market—A Study Based on Fama-French Model
BT  - Proceedings of the 2022 3rd International Conference on E-commerce and Internet Technology (ECIT 2022)
PB  - Atlantis Press
SP  - 725
EP  - 734
SN  - 2589-4943
UR  - https://doi.org/10.2991/978-94-6463-005-3_74
DO  - 10.2991/978-94-6463-005-3_74
ID  - Chen2022
ER  -