Crash risk and debt maturity: evidence from Australia

Mostafa Hasan, Dewan Rahman, Grantley Taylor and Barry Oliver

International Journal of Managerial Finance, 2020, vol. 17, issue 3, 377-400

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.

Keywords: Earnings management; Idiosyncratic volatility; Debt maturity; Accounting conservatism; Stock price crash risk (search for similar items in EconPapers)
Date: 2020
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (text/html)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (application/pdf)
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eme:ijmfpp:ijmf-12-2019-0467

DOI: 10.1108/IJMF-12-2019-0467

Access Statistics for this article

International Journal of Managerial Finance is currently edited by Dr Alfred Yawson

More articles in International Journal of Managerial Finance from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().