The Effect of Typhoon Landfalls on Japanese Non-Life Insurers
Kobe University - Graduate School of Business Administration
April 22, 2012
This paper investigates how typhoon landfalls in Japan influence the value of Japanese non-life insurance companies. First, it finds the stock prices of non-life insurers generally increase around typhoon landfalls. Second, a non-life insurer’s stock price reacts more positively around stronger typhoons and more negatively around typhoons that make a third or subsequent landfall that year. Finally, however, the stock prices of non-life insurers with more capital buffer do not increase around typhoon landfalls.
Number of Pages in PDF File: 21
Keywords: insurance stock return, catastrophe, natural disaster, typhoon, event study
JEL Classification: G14, G15, G22working papers series
Date posted: April 22, 2012
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