Proceedings of the 2023 2nd International Conference on Economics, Smart Finance and Contemporary Trade (ESFCT 2023)

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Evaluation of CAPM and Three-factor Model During the COVID-19: Evidence from Chinese Catering Industry

Authors
Tongyu Ren1, Heng Wang2, Yixuan Zhang3, *
1North Minzu University, Yinchuan, 750021, China
2Dalian University of Technology, Dalian, 116024, China
3Wenzhou-Kean University, Wenzhou, 325060, China
*Corresponding author. Email: 1195290@wku.edu.cn
Corresponding Author
Yixuan Zhang
Available Online 10 October 2023.
DOI
10.2991/978-94-6463-268-2_10How to use a DOI?
Keywords
CAPM; Fama-French Three-Factor Model; Stock returns; Hotel and catering industry stocks
Abstract

In 2019, the COVID-19 pandemic emerged in China and rapidly disseminated worldwide, causing a greater-than-expected impact on the global economy. Most countries’ stock markets were not optimistic, and stocks from different industries have elicited varying social reactions. The paper selects the stocks of 12 hotel and catering industry companies from 2019 to 2022 as research objects to explore the fluctuations experienced by the hotel and catering industry’s stock market during the epidemic. The aim is to test the explanatory and predictive capabilities of the CAPM and the Fama-French-Three-Factor (FF3F) Model on the returns and excess returns of the hotel and catering industry’s stock, and further compare the performances of the two models. The research findings indicate that the Three-Factor Model surpasses the CAPM model in both explanatory and predictive capabilities. These results shed light on the guiding significance of these two models for listed companies in the catering industry to carry out market value management or for investors in choosing investment projects.

Copyright
© 2024 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 2023 2nd International Conference on Economics, Smart Finance and Contemporary Trade (ESFCT 2023)
Series
Advances in Economics, Business and Management Research
Publication Date
10 October 2023
ISBN
978-94-6463-268-2
ISSN
2352-5428
DOI
10.2991/978-94-6463-268-2_10How to use a DOI?
Copyright
© 2024 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  - Tongyu Ren
AU  - Heng Wang
AU  - Yixuan Zhang
PY  - 2023
DA  - 2023/10/10
TI  - Evaluation of CAPM and Three-factor Model During the COVID-19: Evidence from Chinese Catering Industry
BT  - Proceedings of the 2023 2nd International Conference on Economics, Smart Finance and Contemporary Trade (ESFCT 2023)
PB  - Atlantis Press
SP  - 70
EP  - 77
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-268-2_10
DO  - 10.2991/978-94-6463-268-2_10
ID  - Ren2023
ER  -