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Great East Japan Earthquake and Risk Management for Small and Medium-Sized Enterprises ―How Do Japanese SMEs Prepare against Natural Disasters?-

Listed author(s):
  • Nobuyoshi Yamori

    (Research Institute for Economics & Business Administration (RIEB), Kobe University, Japan)

  • Yoshihiro Asai

    (Meiji University, Japan and California State University, Northridge, USA)

We conducted a questionnaire survey regarding insurance and risk management of small and medium-sized enterprises (SMEs) all over Japan in 2014. Based on that survey, this research examined who prepared less against natural disasters before the 2011 Great East Japan Earthquake and how seriously Japanese SMEs with poor risk management were affected by the earthquake. We find that SMEs in a weaker financial condition tended to take fewer measures against earthquakes before the Great East Japan Earthquake. We also find that companies in a weaker financial condition tend to prepare less for earthquake risks even after the Great Earthquake. Furthermore, we find that direct damages from the Great East Japan Earthquake were more serious for SMEs with poor risk management than for those with sound risk management.

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File URL: http://www.rieb.kobe-u.ac.jp/academic/ra/dp/English/DP2017-14.pdf
File Function: First version, 2017
Download Restriction: no

Paper provided by Research Institute for Economics & Business Administration, Kobe University in its series Discussion Paper Series with number DP2017-14.

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Length: 26 pages
Date of creation: May 2017
Handle: RePEc:kob:dpaper:dp2017-14
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