The 12th Academic Luncheon of the Digital Technology and Finance

Abstract：

This paper tries to study whether and how corporates recover after natural disasters. Using earthquakes as natural experiments, we find that government intervention preserves corporate profitability against climate risk. The effects are mainly driven by the direct funding and indirect financial support induced by the government; thus, they make more capital expenditures and improve their investment efficiency. The protection provided by the government is more valuable when firms are more vulnerable to disasters and when the government has a higher ability to help. However, the benefits would be diluted by government public expenditure. When the government offers support through local fiscal expenditure, the preferential protection to intervened firms would be muted. Overall, this paper suggests that the government has a noteworthy and complicated role in stabilizing the market.

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 Asian Finance Annual Meeting (AsianFA); Southern Finance Association Annual Meeting (SFA), Australasian Finance and Banking Conference (AFBC), International Conference of the French Finance Association (AFFI), etc.