Investigate the Impact of the Covid-19 Epidemic on Stock Investments in the American Insurance Industry Based on the Fama-French Five-Factor Model

Xinyuan Zhang ()
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Xinyuan Zhang: Lanzhou University, Department of Economics

A chapter in Proceedings of the 2022 2nd International Conference on Economic Development and Business Culture (ICEDBC 2022), 2022, pp 151-157 from Springer

Abstract: Abstract As one of the most important indicators in financial markets, stock markets can reflect the changing trends of the market. In this paper, using the background of the American insurance industry, according to the Fama-French Five-Factor model and Multiple Linear Regression, the pertinence relations between the five impact factors and the stock excess return rates in the re-epidemic period, post-epidemic before vaccination period, and post-epidemic after vaccination period are calculated respectively. Then, longitudinal changes of each factor are compared to explain the changes in stock investment situations. Empirical research shows that affected by the epidemic, investors make varying degrees of investment changes in five aspects. Finally, some suggestions are given to investors. In this model, insurance industry investors should allocate small-cap stocks, value stocks, and aggressive stocks considering the impact of the COVID-19 epidemic.

Keywords: Fama-French Five-Factor model; COVID-19 epidemic; Insurance industry; US stock market (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-036-7_23

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DOI: 10.2991/978-94-6463-036-7_23

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