Proceedings of the 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021)

The Impact of Covid-19 on U.S. Car Industry Based on Fama-French Five Factor Model

Authors
Li Bai1, *
1College of Liberal Arts, Colorado State University, Fort Collins, Colorado 80524, United States
*Corresponding author. Email:bailiii@rams.colostate.edu
Corresponding Author
Li Bai
Available Online 15 December 2021.
DOI
10.2991/assehr.k.211209.361How to use a DOI?
Keywords
Fama-French model; Covid-19; Car industry; U.S. stock market
Abstract

Asset pricing model reveals the relationship between expected return and risk associated of the portfolios for investors during the investment decision-making process. Concepts (e.g., the correlation of different variables and the growth or decline of the portfolio) are quantified in different models with different expressions. Fama-French five-factor model, as one of the most well-known asset pricing models, has been justified as efficient as reliable in terms of analyzing various portfolios of different market. Starting from the beginning of 2020, the spread of Covid-19 has affected our daily life in many aspects including the stock market. Fama-French five-factor model was adopted to analyze the car industry, and this paper investigates the average value weighted return on portfolios before and during the pandemic to evaluate whether the correlation and the statistical significance of variables is changed. According to the results, investors will be better informed the stability during the pandemic in terms of industries, companies and portfolios. These results shed light for those would like to learn how the pandemic would impact the stock of different industries in the U.S.

Copyright
© 2021 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 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021)
Series
Advances in Economics, Business and Management Research
Publication Date
15 December 2021
ISBN
978-94-6239-483-4
ISSN
2352-5428
DOI
10.2991/assehr.k.211209.361How to use a DOI?
Copyright
© 2021 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  - Li Bai
PY  - 2021
DA  - 2021/12/15
TI  - The Impact of Covid-19 on U.S. Car Industry Based on Fama-French Five Factor Model
BT  - Proceedings of the 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021)
PB  - Atlantis Press
SP  - 2203
EP  - 2208
SN  - 2352-5428
UR  - https://doi.org/10.2991/assehr.k.211209.361
DO  - 10.2991/assehr.k.211209.361
ID  - Bai2021
ER  -