IDEAS home Printed from https://ideas.repec.org/a/eee/corfin/v98y2026ics0929119926000222.html

Extreme weather events and payment timeliness in supply chains: Evidence from Hurricane Katrina

Author

Listed:
  • Dang, Viet A.
  • Gao, Ning
  • Lin, Hongge

Abstract

Payment timeliness is crucial for the efficient functioning of supply chains. This paper examines the impact of extreme weather events on the timeliness of business establishments' payments to their suppliers, with a particular focus on Hurricane Katrina. We find that Katrina caused significant payment delays among affected establishments, with the impact being more severe for establishments whose parent firms were more exposed to Katrina, were financially constrained, or operated in markets with higher supplier competition. Following Katrina, these payment delays were associated with deteriorations in establishments' employment, survival, and exit outcomes, as well as in parent firms' supply-chain relationships and suppliers' financial performance. Our findings demonstrate that physical climate risks can profoundly affect the financial and real outcomes of customer and supplier firms through payment delays.

Suggested Citation

  • Dang, Viet A. & Gao, Ning & Lin, Hongge, 2026. "Extreme weather events and payment timeliness in supply chains: Evidence from Hurricane Katrina," Journal of Corporate Finance, Elsevier, vol. 98(C).
    • Handle: RePEc:eee:corfin:v:98:y:2026:i:c:s0929119926000222
    DOI: 10.1016/j.jcorpfin.2026.102964
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0929119926000222
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jcorpfin.2026.102964?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G33 - Financial Economics - - Corporate Finance and Governance - - - Bankruptcy; Liquidation
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:corfin:v:98:y:2026:i:c:s0929119926000222. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jcorpfin .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.