The 16th Academic Luncheon of the Digital Technology and Finance

Abstract：

This paper studies corporate recovery patterns after natural disasters. Using earthquakes as natural experiments, we find that the Chinese government plays a critical role in facilitating corporate recovery. Firms recover only in a year after disasters, and the effect is more pronounced among SOEs. The effects are driven by direct and indirect capital injection from the government. Firms are less disturbed in their investments and are associated with improved investment efficiency. Moreover, we find that government intervention has a complicated nature. Corporate post-disaster recovery  will be weaker (stronger) for SOEs (Non-SOEs) if the government offers more support through local fiscal expenditure. Overall, this paper suggests that the government has a noteworthy and complicated role in stabilizing the economy.

Speaker Introduction：

Shu Liu is a lecturer at the School of Finance, Zhongnan University of Economics and Law. She received her PhD from City University of Hong Kong. Her academic papers have been selected for many international financial conferences, such as AsianFA, SFA, EFMA, etc.