Firms’ borrowing costs and neighbors’ flood risk
Bibliographic Data
| ID | 14867646 |
|---|---|
| Authors | Thomas Bassetti (0000-0003-0172-6658, University of Padua), Lorenzo Dal Maso (0000-0003-2296-7573, University of Bologna, corresponding author), Valentina Pieroni (IMT School for Advanced Studies Lucca) |
| Year | 2025 |
| Volume | 64 |
| Issue | 3 |
| Pages | 917-933 |
| Publication date | 2025-03-01 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Small Business Economics (JOURNAL) |
| Journal identifiers | ISSN: 0921-898X • E-ISSN: 1573-0913 |
| Publisher | Springer Science and Business Media LLC (PUBLISHER) |
| DOI | 10.1007/s11187-024-00932-0 |
| OpenAlex | W4397039457 |
| Language | EN |
| Citations received | 1 |
| References cited | 45 |
This study examines whether Italian firms exposed to physical climate risks incur additional borrowing costs due to spatial spillovers. Using a sample of 419,040 firm-year observations from 2016 to 2019, we find a positive relationship between a firm’s cost of debt and its neighborhood’s average exposure to climate risk. According to our findings, the costs associated with neighborhood climate risk are as relevant as those associated with a firm’s direct risk, with small businesses being the only ones affected by spillover effects. These results may be explained by small enterprises’ lack of financial diversification, poor bargaining power, and strong reliance on credit from financial intermediaries
Business · Economics · Entrepreneurship · Flood myth · Geography · Natural resource economics · Banking stability, regulation, efficiency · Insurance and Financial Risk Management · Microfinance and Financial Inclusion · Finance
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| Citations per year | 1 |
|---|---|
| Citation span | 2026 - 2026 (1) |
| Highly cited | No |