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Natural disasters and firm leasing: A collateral channel

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  • Wang, Jiawei (Brooke)

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.

Suggested Citation

  • Wang, Jiawei (Brooke), 2023. "Natural disasters and firm leasing: A collateral channel," Journal of Corporate Finance, Elsevier, vol. 82(C).
    • Handle: RePEc:eee:corfin:v:82:y:2023:i:c:s0929119923000779
    DOI: 10.1016/j.jcorpfin.2023.102428
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    Cited by:

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    2. Chen, Xing & Huang, Zhijian (James) & Li, Zhuo & Wen, Fenghua, 2025. "Impact from a distance: Emotionally attached-place disasters and corporate risk-taking," Journal of Corporate Finance, Elsevier, vol. 93(C).
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    4. Xing Chen & Fenghua Wen & Jinli Xiao & Gary Gang Tian, 2025. "Weathering the Risk: How Climate Uncertainty Fuels Corporate Fraud," Journal of Business Ethics, Springer, vol. 201(2), pages 519-547, October.
    5. To, Bao Cong Nguyen, 2025. "No cash hoarding under storms: The pushback effect of growth opportunities," Finance Research Letters, Elsevier, vol. 86(PB).
    6. Yingying Qin & Yishan Zhang & Yu‐en Lin & Jingbo Hu, 2025. "Organization Capital and Corporate Financialization: Evidence From China," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 46(3), pages 1701-1720, April.
    7. Yu, Weihua & Niu, Jinfei & Yao, Xin & Deng, Chenchen, 2026. "Catastrophe’s long reach: How historical natural disasters shape modern entrepreneurship?," World Development, Elsevier, vol. 200(C).
    8. Qureshi, Irfan A. & Ahmad, Ghufran, 2025. "Oil price shocks and US business cycles," Journal of Economic Dynamics and Control, Elsevier, vol. 177(C).
    9. Golden, Joanna & Liu, Xiaotao Kelvin, 2025. "Capitalization of operating leases and the cost of bank loans," Journal of Corporate Finance, Elsevier, vol. 92(C).

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    JEL classification:

    • G0 - Financial Economics - - General
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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