Natural Disasters, Technology Diversity, and Operating Performance

Po-Hsuan Hsu, Hsiao-Hui Lee, Shu-Cing Peng, Long Yi

Research output: Contribution to journalArticlepeer-review

4 Citations (Scopus)


In this paper, we empirically measure the impact of natural disasters on firm-level operating performance and examine if such impact can be mitigated by technology diversification. Using major natural disasters specified by Barrot and Sauvagnat (2015) and factory location data from the toxic release inventory (TRI) database, we first find that firms with factories located in states affected by natural disasters are much less profitable. Second, we find that firms with diversified technologies are significantly less subject to the impact of natural disasters, suggesting that technology diversity enhances firms' sustainability.

Original languageEnglish
Pages (from-to)619-630
Number of pages12
JournalReview of Economics and Statistics
Issue number4
Publication statusPublished - 1 Oct 2018

Scopus Subject Areas

  • Social Sciences (miscellaneous)
  • Economics and Econometrics


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