STOCK MARKET RESPONSE TO METEOROLOGICAL DISASTER RISK: FROM LIQUIDITY PERSPECTIVE

Jie Wu, Yunong Wang and Xiaoguang Yang
Additional contact information
Jie Wu: Academy of Mathematics and Systems Science, Chinese Academy of Sciences, Beijing 100190, P. R. China2University of Chinese Academy of Sciences, Beijing 100049, P. R. China
Yunong Wang: School of Economics and Management, University of Chinese Academy of Sciences, Beijing 100190, P. R. China4Research Center on Fictitious Economy and Data Science, Chinese Academy of Sciences, Beijing 100190, P. R. China5Key Laboratory of Big Data Mining and Knowledge Management, Chinese Academy of Sciences, Beijing 100190, P. R. China
Xiaoguang Yang: Academy of Mathematics and Systems Science, Chinese Academy of Sciences, Beijing 100190, P. R. China2University of Chinese Academy of Sciences, Beijing 100049, P. R. China

Climate Change Economics (CCE), 2024, vol. 15, issue 04, 1-28

Abstract: This study investigates the impact of meteorological disaster risk perception on stock liquidity of Chinese listed companies by constructing meteorological disaster risk perception indicators through the Baidu index. Empirical evidence reveals that an increase in meteorological disaster risk perception decreases investors’ risk appetite and increases investors’ loss aversion, which in turn negatively affects stock liquidity. In addition, the increase in meteorological disaster risk perception also shrinks stock trading volume by reducing investor sentiment. The negative effect of meteorological disaster risk perception on stock liquidity is more pronounced in summer and winter and for firms located in water-rich areas. The findings of this study provide empirical evidence from investors’ perspective for understanding the impact of meteorological disasters on stock market liquidity.

Keywords: Meteorological disaster risk perception; stock liquidity; risk appetite (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.worldscientific.com/doi/abs/10.1142/S2010007824400074
Access to full text is restricted to subscribers

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:wsi:ccexxx:v:15:y:2024:i:04:n:s2010007824400074

Ordering information: This journal article can be ordered from

DOI: 10.1142/S2010007824400074

Access Statistics for this article

Climate Change Economics (CCE) is currently edited by Robert Mendelsohn

More articles in Climate Change Economics (CCE) from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().