| dc.description.abstract | Taiwan has faced many challenges from climate change in recent years, particularly the
impacts of extreme weather events such as typhoons and the rainy (plum rain) season.
Taiwan’s geographical location makes it susceptible to typhoons from the Pacific Ocean.
Each typhoon season, typically in summer and early autumn (from July to October),
brings strong winds and heavy rain, posing significant threats to agriculture, fisheries,
infrastructure, and human safety, posing challenges for every industry in Taiwan.
This study aims to understand whether company value and investment behavior are
affected when firms face extreme rainfall by analyzing historical rainfall data and the
financial information of publicly listed companies in Taiwan. It will follow differential
investment strategies to generate value in response to diverse extreme rainfall conditions.
This study will observe these firms’ market valuations and investment patterns to deter-
mine if extreme rainfall influences company value and whether it leads to changes in their
investment activities. The study will also assess whether making the correct strategic
decisions in response to rains increases company value.
The results found that companies adopt various hedging measures in response to rain-
fall patterns. When facing excess rainfall-departure, companies will increase investments
to improve infrastructure and disaster prevention equipment to ensure business continu-
ity and reduce losses. In contrast, during deficit rainfall-departure, companies will reduce
unnecessary investments and focus resources on drought-resistant measures and water re-
source management. Finally, when a company makes the right investment decisions, its
value increases significantly. | en_US |