In Chapter 7, we empirically test the propositions and hypotheses developed in Ch. 4. Specifically, we examine whether natural disasters, compared to other industrial disasters and terrorist attacks, affect multinational corporations (MNCs) foreign subsidiary investment. We also analyze if this effect varies in response to different sub-types of natural disasters. Then, we test if stronger institutional environments moderate the relationship between disasters and foreign subsidiary-level investment. We test our hypotheses using a panel dataset that includes 31,285 observations from 71 European Fortune Global 500 MNCs and their subsidiaries operating across 101 countries during the period 2001–2006. Our findings indicate that MNC foreign subsidiary investment is likely to decrease in response to severe terrorist attacks or technological disasters but not natural disasters, except for the case of windstorms and related water surges, the deadliest weather-related natural disasters. For natural disasters, the likelihood of MNC subsidiary-level disinvestment increased with higher host country democratic freedoms and decreased with higher host country’s regulatory enforcement quality.