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The Great East Japan Earthquake and Risk Management for Small and Medium Enterprises: Evidence from a 2014 SME Survey

  • Nobuyoshi YamoriEmail author
  • Yoshihiro Asai
Chapter
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Part of the SpringerBriefs in Economics book series (BRIEFSECONOMICS)

Abstract

We conducted a questionnaire survey regarding insurance and risk management among SMEs in Japan in 2014. Based on this survey, this chapter reports 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 weaker financial condition tended to take fewer measures against earthquakes before the Great East Japan Earthquake. We also find that SMEs in weaker financial condition have tended to prepare less for earthquake risks even after the Great Earthquake. Furthermore, we find that direct damage from the Great East Japan Earthquake was more serious for SMEs with poor risk management than for those with sound risk management. These results suggest that financial institutions should provide incentive and support to SMEs to prepare for disasters.

Keywords

Small and medium enterprises (SMEs) Earthquake insurance Risk management Natural disasters 

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Copyright information

© The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2019

Authors and Affiliations

  1. 1.Research Institute for Economics & Business AdministrationKobe UniversityKobeJapan
  2. 2.School of CommerceMeiji UniversityChiyoda-ku, TokyoJapan

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