An Empirical Study of the Market Impact of the COVID-19 on the US Agricultural Sector

DOI

10.2991/978-94-6463-538-6_32How to use a DOI?

Keywords

COVID-19; FF Five Factor Model; US Agriculture

Abstract

The diagnosis of the first case of a novel coronavirus in the United States on January 21, 2020, caused considerable volatility in the This paper collects a large amount of data and conducts regression analysis to examine the extent of the impact on industry market returns through a five-factor Fama-French model that looks at five aspects: market, size, the ratio of total shareholders’ equity to market capitalization, a firm’s ability to make money, and a firm’s investment style, and draws four conclusions: investors’ propensity to invest before and after the epidemic is reversed in the face of firms with high and low book-to-market ratios. The significance of the element of corporate profitability on industry returns was reversed before and after the epidemic; people’s investment preferences were more inclined to invest in positive companies after the epidemic; and the two factors of market and firm size had a significant impact on industry returns both before and after the epidemic. The study found that the New Crown epidemic, a black swan event, had a significant impact on the condiment industry, and investors should avoid investing in related companies and could make short-term investments in companies whose main business is related to eggs.

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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TY  - CONF
AU  - Zitong Jiao
PY  - 2024
DA  - 2024/10/01
TI  - An Empirical Study of the Market Impact of the COVID-19 on the US Agricultural Sector
BT  - Proceedings of the 4th International Conference on Economic Development and Business Culture (ICEDBC 2024)
PB  - Atlantis Press
SP  - 278
EP  - 284
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-538-6_32
DO  - 10.2991/978-94-6463-538-6_32
ID  - Jiao2024
ER  -