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...

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Main Author: Hamdi, Ben-Nasr (author)
Other Authors: Boubaker, Sabri (author)
Format: article
Published: 2024
Subjects:
Online Access: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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_version_ 1857415085053444096
author Hamdi, Ben-Nasr
author2 Boubaker, Sabri
author2_role author
author_facet Hamdi, Ben-Nasr
Boubaker, Sabri
author_role author
dc.creator.none.fl_str_mv Hamdi, Ben-Nasr
Boubaker, Sabri
dc.date.none.fl_str_mv 2024-03-03T08:11:55Z
2024-02-16
dc.format.none.fl_str_mv application/pdf
dc.identifier.none.fl_str_mv http://dx.doi.org/10.1016/j.jfs.2024.101245
Ben-Nasr, H., & Boubaker, S. (2024). Government debt and stock price crash risk: International Evidence. Journal of Financial Stability, 101245.
1572-3089
https://www.sciencedirect.com/science/article/pii/S1572308924000305?v=s5
http://hdl.handle.net/10576/52543
1878-0962
dc.language.none.fl_str_mv en
dc.publisher.none.fl_str_mv Elsevier
dc.rights.none.fl_str_mv http://creativecommons.org/licenses/by/4.0/
info:eu-repo/semantics/openAccess
dc.subject.none.fl_str_mv government debt
fiscal policy uncertainty
bad news hoarding
tax avoidance
crash risk
dc.title.none.fl_str_mv Government debt and stock price crash risk: International Evidence
dc.type.none.fl_str_mv Article
info:eu-repo/semantics/publishedVersion
info:eu-repo/semantics/article
description 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.
eu_rights_str_mv openAccess
format article
id qu_37e72c9077449dfe7ce98bd0a1ac55b1
identifier_str_mv Ben-Nasr, H., & Boubaker, S. (2024). Government debt and stock price crash risk: International Evidence. Journal of Financial Stability, 101245.
1572-3089
1878-0962
language_invalid_str_mv en
network_acronym_str qu
network_name_str Qatar University repository
oai_identifier_str oai:qspace.qu.edu.qa:10576/52543
publishDate 2024
publisher.none.fl_str_mv Elsevier
repository.mail.fl_str_mv
repository.name.fl_str_mv
repository_id_str
rights_invalid_str_mv http://creativecommons.org/licenses/by/4.0/
spelling Government debt and stock price crash risk: International EvidenceHamdi, Ben-NasrBoubaker, Sabrigovernment debtfiscal policy uncertaintybad news hoardingtax avoidancecrash riskWe 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.Elsevier2024-03-03T08:11:55Z2024-02-16Articleinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://dx.doi.org/10.1016/j.jfs.2024.101245Ben-Nasr, H., & Boubaker, S. (2024). Government debt and stock price crash risk: International Evidence. Journal of Financial Stability, 101245.1572-3089https://www.sciencedirect.com/science/article/pii/S1572308924000305?v=s5http://hdl.handle.net/10576/525431878-0962enhttp://creativecommons.org/licenses/by/4.0/info:eu-repo/semantics/openAccessoai:qspace.qu.edu.qa:10576/525432024-07-23T10:58:37Z
spellingShingle Government debt and stock price crash risk: International Evidence
Hamdi, Ben-Nasr
government debt
fiscal policy uncertainty
bad news hoarding
tax avoidance
crash risk
status_str publishedVersion
title Government debt and stock price crash risk: International Evidence
title_full Government debt and stock price crash risk: International Evidence
title_fullStr Government debt and stock price crash risk: International Evidence
title_full_unstemmed Government debt and stock price crash risk: International Evidence
title_short Government debt and stock price crash risk: International Evidence
title_sort Government debt and stock price crash risk: International Evidence
topic government debt
fiscal policy uncertainty
bad news hoarding
tax avoidance
crash risk
url 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