Flooding and firm investment policy.

This table reports the regression results of the effects of flooding on firm investment policy. Dependent variables are R&D expenditures to total assets (R&D) in column 1, capital expenditures to total assets (CAPEX) in column 2, probability of conducting M&As (MA) in column 3, M&A expenses to total assets (MA_exp) in column 4, probability of conducting M&As in non-flooding city (MA_nonflood) in column 5, and probability of conducting M&As in flooding city (MA_flood) in column 6, respectively. 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.