Chinese Stock Market Performance and Natural Disasters

Whelsy Boungou, Melchisedek Ngambou Djatche and Nicholas Biekpe

Journal of Emerging Market Finance, 2025, vol. 24, issue 3, 281-305

Abstract: In this article, we investigate the impact of natural disasters on Chinese stock market performance over the period from 2017 to 2023. Using monthly financial data from 2,117 Chinese companies and climate data relating to floods and storms, our results highlight a negative association between stock market returns and natural disasters. We observe that the recurrence of natural disasters reduces the stock market returns of Chinese companies. We also find that, whatever the intensity of the natural disaster (number of deaths and people affected) and the company’s sector of activity, the observed effect is verified. Our results also show that firms’ Environmental, Social, and Governance (ESG) performance influences their exposure to natural disasters. We find that firms with higher ESG scores perform better despite natural disasters than other firms. This article thus provides the first detailed evidence of Chinese firms’ exposure to natural disasters. JEL Codes: G12, G32, Q40

Keywords: Natural disaster; stock market; ESG; China (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/09726527251318132 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sae:emffin:v:24:y:2025:i:3:p:281-305

DOI: 10.1177/09726527251318132

Access Statistics for this article

More articles in Journal of Emerging Market Finance from Institute for Financial Management and Research
Bibliographic data for series maintained by SAGE Publications ().