Proceedings of the 2022 International Conference on mathematical statistics and economic analysis (MSEA 2022)

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The Impact of COVID-19 on Five Categories of Industries Based on CAPM Model

Authors
Jiajue Gao1, *
1Beijing-Dublin international college, Beijing University of Technology, Beijing, China
*Corresponding author. Email: 18409505@masu.edu.cn
Corresponding Author
Jiajue Gao
Available Online 29 December 2022.
DOI
10.2991/978-94-6463-042-8_88How to use a DOI?
Keywords
CAPM Model; COVID-19; Stock Market; Beta; Industry Analysis
Abstract

The global spread of the COVID-19 epidemic has become a common threat to human society, posing huge challenges to the economies of various countries. On this basis, evaluating the impact of it on the economy and society has become a research hotspot. The stock market, as a barometer of the economy, will reflect the economic impact of the outbreak. The COVID-19 pandemic has affected stock markets around the world, which has forced markets into an unprecedented environment that performances differently among various industries. This paper takes 2-3 stocks from U.S. market in each of the four selecting industries as sample to verify the effectiveness of the classical CAPM model before and after the COVID-19 period based on regression analysis. The data is collected from the Yahoo database, where the period from March 1 to December 31, 2019 is used as the pre-pandemic control while the period from March 1 to December 31, 2020 was labeled as a post-pandemic control. According to the analysis, the β value of bank increased before and after the epidemic while fall for Internet e-commerce, automobile manufacturing and pharmaceutical industries. These results provide guidance for dealing with similar black swan events, contribute to the stability of the market in the future, and offer opportunities for the transformation of various industries with the epidemic.

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 International Conference on mathematical statistics and economic analysis (MSEA 2022)
Series
Advances in Computer Science Research
Publication Date
29 December 2022
ISBN
978-94-6463-042-8
ISSN
2352-538X
DOI
10.2991/978-94-6463-042-8_88How 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  - Jiajue Gao
PY  - 2022
DA  - 2022/12/29
TI  - The Impact of COVID-19 on Five Categories of Industries Based on CAPM Model
BT  - Proceedings of the 2022 International Conference on mathematical statistics and economic analysis (MSEA 2022)
PB  - Atlantis Press
SP  - 612
EP  - 617
SN  - 2352-538X
UR  - https://doi.org/10.2991/978-94-6463-042-8_88
DO  - 10.2991/978-94-6463-042-8_88
ID  - Gao2022
ER  -