Proceedings of the International Workshop on Navigating the Digital Business Frontier for Sustainable Financial Innovation (ICDEBA 2024)

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Discussion of the Factors Influencing the Beta Coefficient in the CAPM Model----Based on an Empirical Study of the China A-shares

Authors
Yuze Wang1, *
1Southwestern University of Finance and Economics Accounting academy, Chengdu, 611130, China
*Corresponding author. Email: dingchongxuan@ldy.edu.rs
Corresponding Author
Yuze Wang
Available Online 24 February 2025.
DOI
10.2991/978-94-6463-652-9_9How to use a DOI?
Keywords
Influencing factors; Beta; CAPM; Multi regression
Abstract

CAPM is a revolutionary concept because it provides a quantitative method to assess investment risk and expected return. In the formula of CAPM, beta represents an investment that risk to a market portfolio. If a company has a beta higher than one, then it is seen as being higher risky than the market. Instead, a beta less than one is thought to potentially less the risk of the market. The main purpose of this article is to analysis the relevance of the three aspects of size, profitability, debt-paying ability to Beta. This article will be represented by the logarithm of Total asset, ROA, current ratio, and asset-liability ratio and profit margin, respectively. In addition, this article will use multiple OLS regression after correlation test’s method to do an empirical study of the China A-shares to analyze the correlation between Beta and factors. The result of study shows that the Beta is relevant to asset-liability ratio, ROA, total asset, and Beta is irrelevant to current ratio and profit margin.

Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the International Workshop on Navigating the Digital Business Frontier for Sustainable Financial Innovation (ICDEBA 2024)
Series
Advances in Economics, Business and Management Research
Publication Date
24 February 2025
ISBN
978-94-6463-652-9
ISSN
2352-5428
DOI
10.2991/978-94-6463-652-9_9How to use a DOI?
Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Yuze Wang
PY  - 2025
DA  - 2025/02/24
TI  - Discussion of the Factors Influencing the Beta Coefficient in the CAPM Model----Based on an Empirical Study of the China A-shares
BT  - Proceedings of the International Workshop on Navigating the Digital Business Frontier for Sustainable Financial Innovation (ICDEBA 2024)
PB  - Atlantis Press
SP  - 83
EP  - 93
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-652-9_9
DO  - 10.2991/978-94-6463-652-9_9
ID  - Wang2025
ER  -