Abstract
Purpose: The purpose of this paper is to examine the association between debt maturity structure and stock price crash risk in Australia.
Design/methodology/approach: The 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.
Findings: Stock 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/value: This 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.
Design/methodology/approach: The 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.
Findings: Stock 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/value: This 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.
| Original language | English |
|---|---|
| Pages (from-to) | 377-400 |
| Number of pages | 24 |
| Journal | International Journal of Managerial Finance |
| Volume | 17 |
| Issue number | 3 |
| Early online date | 6 Jul 2020 |
| DOIs | |
| Publication status | Published - 29 Apr 2021 |
Keywords
- Accounting conservatism
- Debt maturity
- Earnings management
- Idiosyncratic volatility
- Stock price crash risk