Baltas, Konstantinos and Fiordelisi, Franco and Mare, Davide S (2022) Alternative Finance after Natural Disasters. British Journal of Management, 33 (1). pp. 117-137. DOI https://doi.org/10.1111/1467-8551.12516
Baltas, Konstantinos and Fiordelisi, Franco and Mare, Davide S (2022) Alternative Finance after Natural Disasters. British Journal of Management, 33 (1). pp. 117-137. DOI https://doi.org/10.1111/1467-8551.12516
Baltas, Konstantinos and Fiordelisi, Franco and Mare, Davide S (2022) Alternative Finance after Natural Disasters. British Journal of Management, 33 (1). pp. 117-137. DOI https://doi.org/10.1111/1467-8551.12516
Abstract
In this paper, we show that alternative finance (e.g. private equity, crowdfunding and venture capital) is a key source of funding for firms that are affected by natural disasters. Using data on a large sample of US companies from 2010 to 2019, we provide robust empirical evidence that private funding increases within 3 months after the occurrence of a natural disaster. Panel data analysis at state level shows that extreme events cause at least an average increase of funding from alternative finance by 47% relative to firms in non-affected states. We also find that size, reliance on physical assets and age improve access to alternative finance after adverse natural events. Our empirical evidence highlights the key role of private lenders in providing financial resources to affected firms after extreme exogenous events.
Item Type: | Article |
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Divisions: | Faculty of Social Sciences Faculty of Social Sciences > Essex Business School |
SWORD Depositor: | Unnamed user with email elements@essex.ac.uk |
Depositing User: | Unnamed user with email elements@essex.ac.uk |
Date Deposited: | 21 May 2021 10:41 |
Last Modified: | 30 Oct 2024 16:35 |
URI: | http://repository.essex.ac.uk/id/eprint/30406 |
Available files
Filename: 1467-8551.12516.pdf
Licence: Creative Commons: Attribution-Noncommercial-No Derivative Works 3.0