Government debt and stock price crash risk: International Evidence

We add to the literature on the economic outcomes of government debt and argue that government debt increases crash risk via two channels: (i) hoarding bad news and (ii) tax avoidance. Based on a large international sample, our results indicate that stock crash risk is positively associated with gov...

وصف كامل

محفوظ في:
التفاصيل البيبلوغرافية
المؤلف الرئيسي: Hamdi, Ben-Nasr (author)
مؤلفون آخرون: Boubaker, Sabri (author)
التنسيق: article
منشور في: 2024
الموضوعات:
الوصول للمادة أونلاين:http://dx.doi.org/10.1016/j.jfs.2024.101245
https://www.sciencedirect.com/science/article/pii/S1572308924000305?v=s5
http://hdl.handle.net/10576/52543
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الوصف
الملخص:We add to the literature on the economic outcomes of government debt and argue that government debt increases crash risk via two channels: (i) hoarding bad news and (ii) tax avoidance. Based on a large international sample, our results indicate that stock crash risk is positively associated with government debt. Our conclusions are robust when we treat endogeneity issues, and our tests confirm the validity of bad news hoarding and tax avoidance as channels through which government debt influences stock price crash risk.