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<p>As climate change intensifies the frequency and severity of extreme weather events, understanding firm-level exposure to acute climate risks is essential for corporate managers, investors, regulators, and policymakers. This study uses data from 2012 to 2025 to investigate the short-term impact of typhoons and extreme rainstorms on the market value of publicly listed firms. Our analysis focuses on Hong Kong due to its frequent extreme weather events and its well-developed alert system. Using an event-study methodology, we find that the median firm experiences a significant market value loss of −0.36% over the 3 days before the event to the first day after. When examining a window from 5 days before to 5 days after the event, the loss increases to −0.77%. Smaller and less mature firms are more negatively impacted, likely due to limited geographical diversification and operational resilience. Despite examining various aggregated and disaggregated ESG performance scores, we find no evidence that stronger ESG performance alleviates these financial effects, possibly because ESG metrics inadequately capture resilience to acute climate events. Overall, our findings underscore firms’ financial vulnerability to climate-related disasters, provide a profile of the most-at-risk firms, and highlight the need for targeted climate adaptation strategies.</p>

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Corporate exposure to acute climate risks: stock market evidence from Hong Kong

  • 期刊论文

  • 出版模式：

    开放获取

  • 发表日期：

    2026年5月4日

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  • Caroline Jingrong Ma,
  • Quentin Moreau,
  • Zoey Yiyuan Zhou

摘要

As climate change intensifies the frequency and severity of extreme weather events, understanding firm-level exposure to acute climate risks is essential for corporate managers, investors, regulators, and policymakers. This study uses data from 2012 to 2025 to investigate the short-term impact of typhoons and extreme rainstorms on the market value of publicly listed firms. Our analysis focuses on Hong Kong due to its frequent extreme weather events and its well-developed alert system. Using an event-study methodology, we find that the median firm experiences a significant market value loss of −0.36% over the 3 days before the event to the first day after. When examining a window from 5 days before to 5 days after the event, the loss increases to −0.77%. Smaller and less mature firms are more negatively impacted, likely due to limited geographical diversification and operational resilience. Despite examining various aggregated and disaggregated ESG performance scores, we find no evidence that stronger ESG performance alleviates these financial effects, possibly because ESG metrics inadequately capture resilience to acute climate events. Overall, our findings underscore firms’ financial vulnerability to climate-related disasters, provide a profile of the most-at-risk firms, and highlight the need for targeted climate adaptation strategies.