Journal of Corporate Finance Vol. 82 2023
Natural disasters and firm leasing: A collateral channel
Abstract
This paper studies the role of lease financing in disaster-affected firms under collateral constraints. Disaster-affected firms demand funds for post-disaster reconstruction. However, the destruction of natural disasters leads to collateral constraints, which create external financing frictions. I find that affected firms obtain financing through operating leases after natural disasters. The significance of the findings highlights the importance of operating leases for collateral-constrained firms.
- DOI
- 10.1016/j.jcorpfin.2023.102428
- Volume
- 82
- Pages
- 102428
- Language
- en
- Sources
- bibtex:phds-export.bib openalex crossref