Does Debt Maturity Affect Stock Price Crash Risk?

SSRN Electronic Journal ◽

10.2139/ssrn.2732587 ◽

2016 ◽

Cited By ~ 1

Author(s):

Viet Anh Dang ◽

Edward Lee ◽

Yangke Liu ◽

Cheng Zeng

Keyword(s):

Stock Price ◽

Debt Maturity ◽

Crash Risk

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Corporate debt maturity and stock price crash risk

European Financial Management ◽

10.1111/eufm.12134 ◽

2017 ◽

Vol 24 (3) ◽

pp. 451-484 ◽

Cited By ~ 8

Author(s):

Viet Anh Dang ◽

Edward Lee ◽

Yangke Liu ◽

Cheng Zeng

Keyword(s):

Stock Price ◽

Debt Maturity ◽

Crash Risk ◽

Corporate Debt

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Crash risk and debt maturity: evidence from Australia

International Journal of Managerial Finance ◽

10.1108/ijmf-12-2019-0467 ◽

2020 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Mostafa Hasan ◽

Dewan Rahman ◽

Grantley Taylor ◽

Barry Oliver

Keyword(s):

Stock Price ◽

Fixed Effects ◽

Positive Association ◽

Debt Maturity ◽

Crash Risk ◽

Content Type ◽

Panel Data Estimation ◽

Debt Maturity Structure ◽

Maturity Structure ◽

Data Estimation

PurposeThe purpose of this paper is to examine the association between debt maturity structure and stock price crash risk in Australia.Design/methodology/approachThe authors employ panel data estimation with industry and year fixed effects. The paper uses a sample of 1,548 publicly listed Australian firms (8,661 firm-year observations) covering the 2000–2015 period.FindingsStock price crash risk is positively and significantly associated with the long-term debt maturity structure of firms. In addition, this positive association is more pronounced for firms with a more opaque information environment.Originality/valueThis is the first study to examine stock price crash risk in Australia. The findings are value relevant as it uncovers how debt maturity structure affects shareholders' wealth protection.

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