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Article Citation - WoS: 1Citation - Scopus: 1Shaken, Stirred and Indebted: Firm-Level Effects of Earthquakes(Elsevier Science inc, 2024) Arin, K. Peren; Arnau, Josep Marti; Boduroglu, Elif; Celik, Esref UgurUsing 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.
