Industry market reaction to natural disasters: do firm characteristics and disaster magnitude matter?

2022 ◽  
Author(s):  
Ihtisham A. Malik ◽  
Robert Faff
2020 ◽  
Author(s):  
Sahil Narang ◽  
Savita Rawat ◽  
Rudra Prakash Pradhan

Abstract The paper investigates the stock market response to COVID-19 induced financial uncertainty and the role of pre-shock firm-specific characteristics in shaping such stock market behaviour using a sample of S&P BSE 500 companies. Initially, the stock market experiences a significant downfall due to COVID-19 induced uncertainty; although, the market appears to rebound after a major setback. Downfall and recovery are quite surprising as downfall happened when cases were extremely small in number and there was no nation-wide lockdown announcement yet. Recovery happened when strict lockdowns were enforced and cases were rising significantly. Stock market reaction were heterogeneous among industries and various firm characteristics. On closer analysis, we find that some firms are more resilient to COVID-19 shock than others. Our analysis reveals that the most affected were small-sized, high beta, loser, and low-profitability firms as indicated by univariate analysis. The multivariate analysis finds momentum, profitability, beta, market capitalization, age, and book-to-market ratio to be the major determinants of cross-sectional CARs during downfall & recovery period. The study provides evidence of the negative reaction to COVID-19 induced uncertainty and subsequent recovery. We concludes that pre-COVID firm-specific factors play an essential role in explaining the variation in the stock market reaction to COVID-19 induced uncertainty.


2013 ◽  
Vol 44 (4) ◽  
pp. 271-277 ◽  
Author(s):  
Simona Sacchi ◽  
Paolo Riva ◽  
Marco Brambilla

Anthropomorphization is the tendency to ascribe humanlike features and mental states, such as free will and consciousness, to nonhuman beings or inanimate agents. Two studies investigated the consequences of the anthropomorphization of nature on people’s willingness to help victims of natural disasters. Study 1 (N = 96) showed that the humanization of nature correlated negatively with willingness to help natural disaster victims. Study 2 (N = 52) tested for causality, showing that the anthropomorphization of nature reduced participants’ intentions to help the victims. Overall, our findings suggest that humanizing nature undermines the tendency to support victims of natural disasters.


2019 ◽  
Vol 1 (2) ◽  
pp. 1-10
Author(s):  
Amril Mutoi Siregar

Indonesia is a country located in the equator, which has beautiful natural. It has a mountainous constellation, beaches and wider oceans than land, so that Indonesia has extraordinary natural beauty assets compared to other countries. Behind the beauty of natural it turns out that it has many potential natural disasters in almost all provinces in Indonesia, in the form of landslides, earthquakes, tsunamis, Mount Meletus and others. The problem is that the government must have accurate data to deal with disasters throughout the province, where disaster data can be in categories or groups of regions into very vulnerable, medium, and low disaster areas. It is often found when a disaster occurs, many found that the distribution of long-term assistance because the stock for disaster-prone areas is not well available. In the study, it will be proposed to group disaster-prone areas throughout the province in Indonesia using the k-means algorithm. The expected results can group all regions that are very prone to disasters. Thus, the results can be Province West java, central java very vulnerable categories, provinces Aceh, North Sumatera, West Sumatera, east Java and North Sulawesi in the medium category, provinces Bengkulu, Lampung, Riau Island, Babel, DIY, Bali, West Kalimantan, North Kalimantan, Central Sulawesi, West Sulawesi, Maluku, North Maluku, Papua, west Papua including of rare categories. With the results obtained in this study, the government can map disaster-prone areas as well as prepare emergency response assistance quickly. In order to reduce the death toll and it is important to improve the services of disaster victims. With accurate data can provide prompt and appropriate assistance for victims of natural disasters.


2017 ◽  
pp. 87-102 ◽  
Author(s):  
Francesco Pagliacci ◽  
Margherita Russo ◽  
Laura Sartori

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