Sudden flooding vs expected flooding.

This table reports the results of the effects of both sudden flooding and expected flooding on firm performance using various proxies for firm performance, including Tobin’s Q and ROA, which are measured in year t+1. We split our main variable of interest, flood ratio (Floodratio) into two variables Floodratio_sudden and Floodratio_normal. Floodratio_sudden equals Floodratio if the value of Floodratio of a city in a year is at least two-standard-deviation larger than the average Floodratio of that city (where the firm’s headquarter is located) during our sample period and equals 0 otherwise. Similarly, Floodratio_normal equals Floodratio if the value of Floodratio of a city in a year is not at least two-standard-deviation larger than the average Floodratio of that city during our sample period and equals 0 otherwise. All independent variables are measured in year t. Variable definitions are in Table A1 in the S1 Appendix. Robust standard errors are clustered at the city-year level and reported in parentheses. *, ** and *** indicate the significance levels at 10%, 5% and 1%, respectively.