“Not all climate risks are alike”: Heterogeneous responses of financial firms to natural disasters in China

Yajie Chen, Kun Guo, Qiang Ji and Dayong Zhang

Finance Research Letters, 2023, vol. 52, issue C

Abstract: This paper explores the capital market responses of financial firms to natural disasters in China. Using the event study approach, we demonstrate that the capital market responses of financial firms vary to the type of natural disaster. These heterogeneous responses are also affected by the type of financial firm. Security companies are generally more sensitive to all types of disasters and have statistically significant negative abnormal returns. Banks only respond to earthquakes, whereas insurance companies have generally insignificant cumulative abnormal returns to all three type of natural disasters.

Keywords: Climate risks; Event study; Financial institutions; Natural disasters (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:52:y:2023:i:c:s1544612322007140

DOI: 10.1016/j.frl.2022.103538

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