Reinstatement of flood affected properties:experiences of SMEs affected by the 2009 Cockermouth flood event

Recent policy changes in the UK encourage at-risk communities to learn to live with and adapt to flooding. Adaptation of individual properties by embracing resilient and resistant measures is an important aspect endorsed therein. Uptake of such protection measures by property owners, including that of Small and Medium-sized Enterprises (SMEs), has traditionally been low. A post-flood situation offers an opportunity to reinstate / reconstruct by integrating flood protection measures, in such a way that reduce damage and enhance the ability to recover in the event of a future flood incidence. In order to investigate the reinstatement / reconstruction experiences of flood affected SMEs, those affected by the 2009 Cockermouth flood event were studied. The results of a questionnaire survey revealed that many SMEs have opted for traditional reinstatement rather than resilient reinstatement. A detailed case study revealed requirements of getting the business back and running as soon as possible, a lack of guidance and advice from professionals and financial concerns as some of the barriers faced by SMEs. It is important that SMEs are provided with necessary guidance during the post-flood reinstatement stage, in order to make sure that the opportunity to build back better, integrating flood-protection measures is grasped by the SME owners. Stakeholders related to the construction industry, who are actively involved with post-flood reinstatement work, have an important role to play in this regard, providing necessary guidance and expertise to flooded SMEs.

Pre-adoption market reaction to IFRS 9:a cross-country event-study

We are the first to examine the market reaction to 13 announcement dates related to IFRS 9 for over 5400 European listed firms. We find an overall positive reaction to the introduction of IFRS 9. The regulation is particularly beneficial to shareholders of firms in countries with weaker rule of law and a smaller divergence between local GAAP and IAS 39. Bootstrap simulations rule out the possibility that sampling error or data mining are driving our findings. Our main findings are also robust to confounding events and the extent of the media coverage for each event. These results suggest that investors perceive the new regulation as shareholder-wealth enhancing and support the view that stronger comparability across accounting standards of European firms is beneficial to international investors and outweighs the costs of poorer firm-specific information.