The Empirical Analysis of Asset Pricing Models in the Asia-Pacific Stock Market Under COVID-19

Through comparative analysis, this paper verifies that Fama and French Five-Factor Model (FF5) is more explanatory than other asset pricing models in analyzing the stock pricing in the Asia-Pacific region from the end of 2016 to the end of 2019. But at the end of 2019, covid-19 was ushered in, which broke the economic situation at that time. Therefore, this paper analyzes the data from December 2019 to December 2022 and verifies that the explanatory power of FF5 is still high compared with other models under the influence of the epidemic. However, because each country implemented different policies in controlling the epidemic during the epidemic period, which indirectly affected the development of enterprises of different scales, FF5 was used to study the stock pricing of companies of different scales and book-to-market value, and it was found that FF5 had changed the explanatory power of stock pricing for enterprises of different scales.