How Debt Maturity Structure Effects On Stock Price Crash Risk: Evidence From Vietnam

Abstract

This studyxanalyzes the relationshipxbetween thexdebt maturityxstructure and the stockxprice crashingxrisk forxnon-financial enterprises in the Vietnamese Stock Market from 2012 to 2022. The paper uses a samplexof 189 publicly listed in the Ho Chi MinhxStockxExchange and Ha NoixStock Exchange (571 observations). The findings indicate that the possibilityxof stock market crashes are significantly and highly related to firms' long-termxdebt maturities. This suggests that growing long termxdebt increases the probability of a stockxpricexcrash risk. Strong corporatexmanagement procedures resultxin favorablexdebt issuesxover timexand reducexunderstanding asymmetry, leading toxcorporate crashxrisk. xThe findings are significant because they demonstrate how the debt maturity structure influences shareholder wealth protection