Abstract
A catastrophic outbreak has hit the globe, which there was no country can avoid. Every industry had hit by the COVID-19. This study aims to evaluate changes in insurance industry of American stock market during three stages of epidemic. As an industry that helps people avoid risk, the extent to which the insurance industry is affected indirectly shoes how people are living under the pandemic. The data was adopted from the resource library of Kenneth R. French website. Also, Fama-French five-factors model was selected to analyze the index of given factors from March 2019 to June 2021 which divided to three periods. Afterwards, the multiple linear regression was conducted to obtain the parameters. According to the t-Stat and coefficients, market, profitability and investment style factors had more dramatic changes. The results indicate that investor preferred small companies and robust profitability companies. However, it has more opportunities for speculation, in the remission of COVID-19. It should be recommended that results can help the investors choose safer in investments of insurance industry.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Ali, M., Alam, N., Rizvi, S.A.R.: Coronavirus (COVID-19)—an epidemic or pandemic for financial markets. J. Behav. Exp. Financ. 27, 100341 (2020)
Goodell, J.W.: COVID-19 and finance: Agendas for future research. Financ. Res. Lett. 35, 101512 (2020)
Pak, A., Adegboye, O.A., Adekunle, A.I., Rahman, K.M., McBryde, E.S., Eisen, D.P.: Economic consequences of the COVID-19 outbreak: the need for epidemic preparedness. Front. Public Health 8, 241 (2020)
Salisu, A.A., Sikiru, A.A., Vo, X.V.: Pandemics and the emerging stock markets. Borsa Istanbul Rev. 20, S40–S48 (2020)
Arner, D.W., Barberis, J.N., Walker, J., Buckley, R.P., Dahdal, A.M., Zetzsche, D.A.: Digital finance & the COVID-19 crisis. University of Hong Kong Faculty of Law Research Paper, (2020/017) (2020)
Huang, Y., Yang, S., Zhu, Q.: Brand equity and the Covid-19 stock market crash: Evidence from US listed firms. Finance Research Letters, 101941 (2021)
Garrett, A.B., Gangopadhyaya, A.: How the COVID-19 recession could affect health insurance coverage. Available at SSRN 3598558 (2020)
Babuna, P., Yang, X., Gyilbag, A., Awudi, D.A., Ngmenbelle, D., Bian, D.: The impact of Covid-19 on the insurance industry. Int. J. Environ. Res. Public Health 17(16), 5766 (2020)
Bundorf, M.K., Gupta, S., Kim, C.: Trends in US Health Insurance Coverage During the COVID-19 Pandemic. In JAMA Health Forum (Vol. 2, No. 9, pp. e212487-e212487). American Medical Association (2021)
Farooq, U., Nasir, A., Bilal, Quddoos, M.U.: The impact of COVID-19 pandemic on abnormal returns of insurance firms: a cross-country evidence. Applied Econ. 53(31), 3658–3678 (2021)
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2022 The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd.
About this paper
Cite this paper
Wang, H. (2022). Analysis of Insurance Industry in the U.S. Stock Market Based on Fama-French. In: Li, X., Yuan, C., Ganchev, I. (eds) Proceedings of the 2022 International Conference on Business and Policy Studies. CONF-BPS 2022. Applied Economics and Policy Studies. Springer, Singapore. https://doi.org/10.1007/978-981-19-5727-7_37
Download citation
DOI: https://doi.org/10.1007/978-981-19-5727-7_37
Published:
Publisher Name: Springer, Singapore
Print ISBN: 978-981-19-5726-0
Online ISBN: 978-981-19-5727-7
eBook Packages: Economics and FinanceEconomics and Finance (R0)