The determinants of recovery from the Black Saturday bushfire: demographic factors, behavioural characteristics and financial literacy

Abstract

We investigate the contribution of demographic factors, behavioural characteristics and financial literacy to recovery from the financial losses inflicted by the Black Saturday bushfire. Behavioural characteristics (such as overconfidence, self‐serving and loss aversion biases) in conjunction with bushfire survivors’ knowledge of financial indicators are used to determine recovery time. Data are collected through in‐depth interviews with bushfire survivors, academics and experts in natural disasters. The results show that demographic, behavioural and financial literacy factors have the potential to enhance the recovery process.

Pitching research for engagement and impact: a simple tool and illustrative examples

“…Interestingly, there is growing evidence that contemporary published papers are becoming more in tune with diverse relevant recent real-world problems. 9 For example, Asbi et al (2020) examine recovery from the Black Saturday bushfires. Further, Xue et al (2019) consider financial well-being amongst elderly Australians, while Michalak and Ashkanasy (2020) investigate workplace psychopaths and other toxic employees.…”

“…For example, Asbi et al . (2020) examine recovery from the Black Saturday bushfires. Further, Xue et al .…”

Assessing the effectiveness of Covid-19 financial product innovations in supporting financially distressed firms and households in the UAE

“…The survey questionnaire design mirrored the concepts identified in the literature review. It incorporated items that had either been taken directly or adapted from previous studies on the topic of pandemics, financial crises, extreme events, financial planning, and behavioral finance (e.g., Asbi et al 2020 ; Chowk et al 2016 ; Greer et al 2000 ; Linsky 1975 ; Ramiah et al 2014 , 2016 ).…”

“…Galea et al ( 2008 ) find evidence for post-traumatic stress disorder following financial losses caused by natural disasters. Focusing on bushfires within Australia, Asbi et al ( 2020 ) identified significant and long-lasting effects on business premises, residential housing, livestock, and infrastructure. To prevent permanent damage to the economic system, Zhang and Zhang ( 2011 ) study the role of fiscal policy in economic recovery.…”

Do Firms Experiencing More Wildfires Disclose More Wildfire Information in Their 10-Ks?

“…Recent catastrophic and costly wildfires have spotlighted the need for research on wildfire risk as a financial valuation factor. While a healthy literature examines the cost of wildfires from a macroeconomic perspective (for a review, see Thomas et al 2017), the number of studies so far on the firm-value impacts of wildfires is small (Asbi et al 2020;Cleetus and Mulik 2014;Williams et al 2019). Much of this firm-level literature, moreover, relates to wildfire risk for insurance pricing purposes (CoreLogic 2019).…”