A collaborative paper titled Recovering after natural disasters: A stabilizing role of the government by Yonghao Xu, Associate Professor，and Liu Shu,a researcher of the Base,has been published in China Economic Review.

Abstract: This paper explores the patterns of corporate recovery following natural disasters, with a specific focus on the government’s role in facilitating this process. Our results reveal that firms recover fast following disasters in China, with the effect being more pronounced among state-owned enterprises (SOEs). Mechanism analysis identifies the government’s direct and indirect capital injections as the primary drivers of this swift recovery, which help mitigate disruptions in corporate investments. Furthermore, this government intervention exhibits a nuanced nature. Corporate post-disaster recovery tends to be weaker (stronger) for SOEs (Non-SOEs) when local fiscal expenditure is stronger. Different government intervention methods exhibit a substitution effect. Overall, this paper underscores the noteworthy and intricate role of the government in stabilizing the economy.

Keywords: Post-disaster recovery; Corporate performance; Government intervention; SOEs

Link: https://doi.org/10.1016/j.chieco.2025.102569

Author profile

Yonghao Xu holds a Ph.D. in Finance from Peking University and joined the School of Finance, Zhongnan University of Economics and Law in 2021. His research interests encompass behavioral finance, asset pricing, and household finance. His research achievements have been published in domestic and international journals such as Management World, International Review of Economics and Finance, and Economics Letters. In 2022, he was awarded a Youth Project from the National Natural Science Foundation of China.

Liu Shu , a lecturer in the School of Finance, Zhongnan University of Economics and Law, obtained her doctor's degree from City University of Hong Kong. Her academic papers have been published in many foreign high-quality journals and conferences, including FRL, FMA, AsianFA, SFA, EFMA, etc. She has hosted one youth project of the Ministry of Education and participated in several projects, including the National Natural Science Foundation of China and the National Social Science Key Project.