RESEARCH PAPERS
How Firms Adapt to Physical Climate Risk: New LLM-Based Evidence from 13,500 US Companies
Analyzing 255 million paragraphs from 128,860 Form 10-K filings (2003–2025), this paper introduces the first scalable LLM-based measure of firm-level climate adaptation. Pre-event physical protection mitigates hurricane stock market losses by up to 37%, but financially constrained firms underadapt precisely when it matters most.