| dc.description.abstract | In this paper, I discover a positive association between Chinese MPU and
the large-scale stock price decline, suggesting that an increase in Chinese MPU worsens
the firm-level crash risk in Vietnam. This correlation is based on data from 5,174 firm year observations of 622 unique firms which are listed on the Hochiminh Stock
Exchange (HSX) and Hanoi Stock Exchange (HNX) between 2009 and 2022. A closer
look reveals that companies with high information asymmetry, reliance on external
finance, or poor corporate governance are more inclined to have a decline in
Vietnam's stock prices when experiencing heightened MPU from China. When
considered as a whole, this research makes a contribution to the literature body about
crash risk factors and policy uncertainty indicators. Furthermore, by understanding
crash risk processes and the uncertainty of policies, the findings assist market
participants in protecting themselves from such risks and making better investment
decisions | en_US |
