Shaken, stirred and indebted: Firm-level effects of earthquakes

Author First name, Last name, Institution

K. Peren Arin, Zayed University; Australian National UniversityFollow
Josep Marti Arnau, Zayed University
Elif Boduroglu, Atilim University
Esref Ugur Celik, Atilim University

Document Type

Article

Source of Publication

The Quarterly Review of Economics and Finance

Publication Date

8-1-2024

Abstract

Using firm-level data from Turkiye, we investigate the effects of earthquakes on firms’ balance sheets. We find that earthquakes increase firms’ liabilities but have a smaller effect on firms’ assets, both in magnitude and significance. Using surveys sent to the finance and/or accounting managers of the largest 100 firms in Turkiye we identify common themes in their perceptions. Our findings reveal a consensus among respondents attributing the increased liabilities to exchange rate depreciation and lower business activity following a disaster. Conversely, higher availability of external credit is associated with a decrease in liabilities. Our analysis also indicates that finance managers with higher educational attainment may be underestimating the effects of earthquakes.

DOI Link

10.1016/j.qref.2024.101894

ISSN

1062-4259

Publisher

Elsevier BV

First Page

101894

Last Page

101894

Disciplines

Business

Keywords

Natural disasters, Earthquakes, Firm-level data, Survey data, Perceptions

Recommended Citation

Arin, K. Peren; Arnau, Josep Marti; Boduroglu, Elif; and Celik, Esref Ugur, "Shaken, stirred and indebted: Firm-level effects of earthquakes" (2024). All Works. 6647.
https://zuscholars.zu.ac.ae/works/6647

Indexed in Scopus

no

Open Access

no