Research On Excess Yield Of The A-share Biomedical Industry Based On Five-factor Correction Model

In recent years,benefiting from the gradual increase in health awareness of the public,increasing population aging,upgrading technical iteration,and government support,many investors and various investment institutions have set their sights on the biomedical industry.From 2016 to 2021,the total profit of pharmaceutical manufacturing enterprises above the industrial scale of my country increased steadily.The total profit in 2021 reached 627.14 billion yuan,an increase of12.8%year-on-year.The development of the biomedical industry not only enhances the national medical awareness,but also has cultivated new economic growth points for the country.At present,the valuation of the biomedical sector is bottomed out,and the new drug research and development cycle is long.However,from a macro and long-term perspective,the biopharmaceutical industry is still worthy of investors for medium-and long-term investment.Before investing,investors have a deep understanding of the overall development trend and excess yield of the biomedical industry.What kind of asset allocation is in guiding significance.The overall development trend of the biomedical industry needs to analyze macro factors such as the international development situation and relevant government policies.The analysis of the excess yield situation is mainly based on the theory of pricing theory.In order to study the specific factors that affect the excess yield of stocks in the biomedical industry,the article applies the frontier theory of international asset pricing to the study of the domestic biomedical industry.The factor model is the entry point.Based on the data from January 2014 to December 2021,the method of building variable combinations is used to use the dual variable grouping method.The factors are a topic with both theoretical significance and practical value.This article selects the monthly data of 89 A-share biopharmaceutical industry in Shenwanhongyuan’s securities industry from January 2014 to December 2021,uses the data of Guotaian Database and the company’s financial statements to build an interpretation variable,and uses the Cross-section The inspection method builds different time sequence combinations from the five perspectives of the market,scale,valuation,profit,and investment,and uses descriptive statistics,correlation analysis,redundant testing and other methods.The redundant factor builds a liquidity correction model,and then compares the interpretation of different models and factor.The results of the empirical analysis show that market factors and scale factor have a significant impact on excess yield,and the income performance of small market value stocks is better than large market value stocks;investment factors and scale factor,and book market value ratio have a high phase relationship.It may be as a relationship between the factors.Reduce factor;and the liquidity correction model that adds liquidity factors is more suitable for the domestic biomedical industry.Combined the conclusions and the current status of the development of the domestic biomedical industry,this article proposes to guide individual investors to maintain a rational and calm attitude in the investment process;urge listed companies to strengthen the quality of information disclosure,legal compliance disclosure of financial information;reasonable management and control The liquidity of the stock market eliminates policy recommendations such as "speculative market".