| dc.description.abstract | There is limited empirical evidence regarding how climate policy
uncertainty (CPU) affects the stock price crash risk, especially the U.S. tourism and
hospitality (HT) industry. Using 2,548 observations from 285 unique U.S. HT firms for
the period between 1987 and 2020, I find a positive association between CPU and stock
price crash risk, suggesting increased crash risk for firms in the HT sector during
periods heightened CPU. Further investigation reveals that this link is stronger for firms
facing high levels of information asymmetry and financial constraints. Additionally,
my research confirms that heightened CPU encourages managers to withhold negative
news, exacerbating information asymmetry among market participants and
consequently raising the chances of subsequent stock price crashes within the HT
industry. Overall, this study contributes to the literature on policy uncertainty indicators
and factors affecting crash risk, offering insights valuable for risk management and
investment decisions, particularly within the tourism and hospitality sector | en_US |
