Typhoons'effect,stock returns,and firms'response:Insights from China
This paper examines the impact of typhoons in China on the stock returns of Chinese A-share listed firms and the responses of their managers.Based on a sample of Chinese A-share listed companies from 2003 to 2018,we find that the occurrence of typhoons causes significant negative effects on the Chinese stock market,both economically and statist-ically.We use an event study approach to test the impact of typhoons directly,and we sort the stocks into different portfo-lios to examine the sensitivity of the typhoons'effect to different factors.We also investigate the responses of firms'man-agement to damaging disasters using a difference-in-differences method with multiple time periods.We discover that firms in the neighborhood area are willing to take precautions,including decreasing the current debt to total debt ratio and in-creasing the ratio of long-term borrowing financing to total assets.Furthermore,firms'overreactions will disappear as the number of attacks increases,and the rationality of this overreaction needs further research.
NETL
NSTL
万方数据
