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

Zitong Jiao ()
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Zitong Jiao: Lingnan University, Faculty of Social Sciences

A chapter in Proceedings of the 4th International Conference on Economic Development and Business Culture (ICEDBC 2024), 2024, pp 278-284 from Springer

Abstract: 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.

Keywords: COVID-19; FF Five Factor Model; US Agriculture (search for similar items in EconPapers)
Date: 2024
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DOI: 10.2991/978-94-6463-538-6_32

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