Natural disasters and firm leasing: A collateral channel

• Published in: Journal of corporate finance (Amsterdam, Netherlands) Vol. 82; p. 102428
• Main Author: Wang, Jiawei (Brooke)
• Format: Journal Article
• Language: English
• Published: Elsevier B.V 01.10.2023
• Subjects: Collateral constraints; Financing frictions; Leasing; Natural disasters; Leasing; G0; Financing frictions; Natural disasters; Collateral constraints; G32

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 f...