Corporate mitigation strategy due to disaster risk disclosure

Abstract

In the view of social needs of low years, the appropriate corporate disaster risk management is required to firms. In this paper, we aim socially desirable implementation of disaster mitigation investment and proper fulfillment of corporate stock prices. We analyse the model representing managers' voluntary actions of disaster mitigation investment and risk disclosure. In conclusion, we denote that the aims are accomplished through the disclosure both information of disaster mitigation investment and disaster risk level which their firms are exposed. And more, when either of these disclosures is lacked, the variance with socially desirable disaster mitigation investment can be occurred.