Corporate investor confidence in the aftermath of a mega natural disaster: An empirical study of the 2008 Wenchuan earthquake

Previous studies show that extreme disasters, such as earthquakes, have enormous impacts on individual and organizational behavior, including self-protection. While such experience is important for risk control processes, the influence of disasters on corporate performance and stakeholder perception...

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Main Authors: Wang, A., Marinova, Dora, Wang, F., Wei, J.
Format: Journal Article
Language:English
Published: ELSEVIER 2020
Subjects:
Online Access:http://hdl.handle.net/20.500.11937/88223
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author Wang, A.
Marinova, Dora
Wang, F.
Wei, J.
author_facet Wang, A.
Marinova, Dora
Wang, F.
Wei, J.
author_sort Wang, A.
building Curtin Institutional Repository
collection Online Access
description Previous studies show that extreme disasters, such as earthquakes, have enormous impacts on individual and organizational behavior, including self-protection. While such experience is important for risk control processes, the influence of disasters on corporate performance and stakeholder perceptions, especially that of investors, has not yet been investigated. Investment behavior however is a key factor in the recovery process. How the corporate world reacts after a disaster is an indicator for the renewal and revival ability of the affected economies and their long-term sustainability. This study contributes to understanding post-disaster corporate investor confidence by investigating how the distance from the severely affected area influences corporate investor confidence. By analyzing 98 publicly listed companies located in the disaster areas of the 2008 Wenchuan earthquake, the analysis finds that during 2008–2013 both geographical and temporal distances serve as promoters in influencing the post-disaster investor confidence. Moderating effects of firm performance and industry risk on the relationship between disaster distance and post-disaster investor confidence are identified. The paper also outlines possible future research directions.
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spelling curtin-20.500.11937-882232023-03-20T03:27:36Z Corporate investor confidence in the aftermath of a mega natural disaster: An empirical study of the 2008 Wenchuan earthquake Wang, A. Marinova, Dora Wang, F. Wei, J. Science & Technology Technology Engineering, Industrial Operations Research & Management Science Engineering Earthquake Disaster distance Investor confidence Disaster management CONSTRUAL-LEVEL THEORY FIRM PERFORMANCE INFORMATION RESPONSIBILITY DECISIONS STRATEGY Previous studies show that extreme disasters, such as earthquakes, have enormous impacts on individual and organizational behavior, including self-protection. While such experience is important for risk control processes, the influence of disasters on corporate performance and stakeholder perceptions, especially that of investors, has not yet been investigated. Investment behavior however is a key factor in the recovery process. How the corporate world reacts after a disaster is an indicator for the renewal and revival ability of the affected economies and their long-term sustainability. This study contributes to understanding post-disaster corporate investor confidence by investigating how the distance from the severely affected area influences corporate investor confidence. By analyzing 98 publicly listed companies located in the disaster areas of the 2008 Wenchuan earthquake, the analysis finds that during 2008–2013 both geographical and temporal distances serve as promoters in influencing the post-disaster investor confidence. Moderating effects of firm performance and industry risk on the relationship between disaster distance and post-disaster investor confidence are identified. The paper also outlines possible future research directions. 2020 Journal Article http://hdl.handle.net/20.500.11937/88223 10.1016/j.ssci.2020.104620 English http://creativecommons.org/licenses/by-nc-nd/4.0/ ELSEVIER fulltext
spellingShingle Science & Technology
Technology
Engineering, Industrial
Operations Research & Management Science
Engineering
Earthquake
Disaster distance
Investor confidence
Disaster management
CONSTRUAL-LEVEL THEORY
FIRM PERFORMANCE
INFORMATION
RESPONSIBILITY
DECISIONS
STRATEGY
Wang, A.
Marinova, Dora
Wang, F.
Wei, J.
Corporate investor confidence in the aftermath of a mega natural disaster: An empirical study of the 2008 Wenchuan earthquake
title Corporate investor confidence in the aftermath of a mega natural disaster: An empirical study of the 2008 Wenchuan earthquake
title_full Corporate investor confidence in the aftermath of a mega natural disaster: An empirical study of the 2008 Wenchuan earthquake
title_fullStr Corporate investor confidence in the aftermath of a mega natural disaster: An empirical study of the 2008 Wenchuan earthquake
title_full_unstemmed Corporate investor confidence in the aftermath of a mega natural disaster: An empirical study of the 2008 Wenchuan earthquake
title_short Corporate investor confidence in the aftermath of a mega natural disaster: An empirical study of the 2008 Wenchuan earthquake
title_sort corporate investor confidence in the aftermath of a mega natural disaster: an empirical study of the 2008 wenchuan earthquake
topic Science & Technology
Technology
Engineering, Industrial
Operations Research & Management Science
Engineering
Earthquake
Disaster distance
Investor confidence
Disaster management
CONSTRUAL-LEVEL THEORY
FIRM PERFORMANCE
INFORMATION
RESPONSIBILITY
DECISIONS
STRATEGY
url http://hdl.handle.net/20.500.11937/88223