European SMEs, Corporate Finance and Economic Resilience to Floods

Flavio de Carolis and Vinzenz Peters

Working Papers from DNB

Abstract: We investigate how leverage and the debt maturity structure of SMEs influences their resilience to floods. Using a dataset of six million geo-coded firm-year observations across nine European countries and granular flood maps, we employ dynamic difference- in-differences estimators to assess the economic impacts of floods and the mediating effects of leverage and debt maturity. Our findings highlight a non-linear relationship between leverage and resilience. SMEs with high levels of short-term debt and low levels of long-term debt show more severe reductions in their post-flood employment growth.

Keywords: Economic Resilience; Climate Change; Floods; Leverage; Small- and Medium-Sized Enterprises (search for similar items in EconPapers)
JEL-codes: G32 J21 Q54 (search for similar items in EconPapers)
Date: 2025-03
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Persistent link: https://EconPapers.repec.org/RePEc:dnb:dnbwpp:832

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