Effect of Car Industry in US Stock Market during COVID-19 Based on Fama-French Five-Factor Model
2021 International Conference on Computer, Blockchain and Financial Development, CBFD 2021
; : 151-154, 2021.
Article
in English
| Scopus | ID: covidwho-1846062
ABSTRACT
The pandemic has created a severe global economic recession and destroyed many industries since it broke out at the beginning of 2020. However, many car enterprises had an outstanding performance last fiscal year. This paper applied Fama-French five-factor model to analyze the effect on the car industry under the pandemic. Based on the daily five-factor data (US car industry stocks) from Kenneth R. French's database, we select the corresponding 20-month data, with the outbreak point of March 1, 2020, as the dividing line. March 1, 2020, to December 31, 2020, is post-epidemic, while May 2019 to February 2020 is pre-epidemic. After regression analysis, it finds that COVID-19 has a dramatic effect on the car industry. With the development of the electric car, investors prefer to invest in emergent electric car companies. On the other hand, the electric car industry still has some urgent technology barriers. Investors should concentrate on the technology development of electric cars instead of blindly following the investment boom. © 2021 IEEE.
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Collection:
Databases of international organizations
Database:
Scopus
Type of study:
Experimental Studies
Language:
English
Journal:
2021 International Conference on Computer, Blockchain and Financial Development, CBFD 2021
Year:
2021
Document Type:
Article
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