Financing Pricing Model under Certain Conditions: Evidence from COVID-19, Regional War and Global Financial Crisis

Financing pricing models are widely adopted in assets valuation contemporarily. This study introduces some of the historical research and development on asset pricing models. It examines the implementation of Fama-French models and the Capital Asset Pricing Model (CAPM) under specific global conditions, including COVID-19, regional wars, and the global financial crisis. Based on previous research and comprehensive analysis, the performance of these models during periods of economic uncertainty and their applicability in different industries and regions are evaluated. Some improvements made by predecessors to these models to adapt to these special challenges are listed. The results show that although traditional models such as Fama-French are effective in most cases, some results deviate from expectations due to the complexity of financial markets during crises. These models generally cannot explain some non-economic risks and extreme fluctuations. The research suggests that in some special periods, it is necessary to modify and expand these models to improve their accuracy and reliability under crisis conditions.