Natural disasters and analysts' earnings forecasts

Climate change and financial stability: Natural disaster impacts on global stock markets

“…More recently, a stream of research has started focusing on the influence of natural disasters on capital markets from a behavioural perspective. Kong et al (2020) investigate, through a quasi-difference-in-differences (Quasi-DID) design, the impacts of earthquakes on security analysts' earnings forecasts. They discover, among others, that earthquakes do not exert any significant effects on firm earnings and stock returns, and thereby conclude that post-earthquake pessimism of analysts is not grounded on rational judgment.…”

Forecasting crude oil prices in the COVID-19 era: Can machine learn better?

“…First, our research adds to a series of studies on severe events, particularly the COVID-19 event. Extreme events, such as natural disasters or geopolitical concerns, will have a substantial effect on the stock market or the energy industry ( Kong et al, 2021 , Xie et al, 2021 , Rakshit, 2021 , Gu et al, 2021 ). As a catastrophic event, COVID-19 has significantly affected the stock market and the energy industry ( Karavias et al, 2022 , Si et al, 2021 , Narayan, 2021 ).…”

Knowing the Unknowns – Fresh Insights From an Unknown Stock Market

“…Our study contributes to the literature that examines the impact of natural disasters on stock markets. Kong et al (2021) examines the effect of earthquake on China's analysts' earnings forecasts and stock returns and conclude that earthquakes do not significantly affect firms' earnings and stock returns. Worthington and Valadkhani (2004) examine the impact of natural disasters on the Australian equity market.…”