Extreme weather and corporate fixed asset policies: leasing as alternative finance
研究了受极端天气影响的企业如何调整固定资产购买和融资决策，发现租赁是重要的替代融资来源，尤其对面临融资障碍的企业。
This paper investigates how weather-affected firms make decisions on fixed asset purchases and financing choices for fixed asset acquisition. Utilizing a unique dataset comprising over 26,000 firms across 40 countries, we find that weather-affected firms are more prone to purchase fixed assets, increasing investments in machinery, equipment, and real estate. These purchases are primarily financed through equity, bank loans, and government grants. Particularly, we find that leasing is a vital fallback financing source for firms experiencing losses due to extreme weather. Firms that exclusively rely on leasing rather than other financial sources are more likely to face significant external financing barriers, including complex loan procedures, high collateral requirements, and increased loan rejection rates. Interestingly, weather-affected firms that have successfully obtained non-leasing finance for fixed asset purchases have a higher tendency to also engage in leasing, highlighting that such firms adopt flexible strategies for fixed asset acquisition.