Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/294720 
Year of Publication: 
2023
Citation: 
[Journal:] Cogent Business & Management [ISSN:] 2331-1975 [Volume:] 10 [Issue:] 3 [Article No.:] 2277481 [Year:] 2023 [Pages:] 1-14
Publisher: 
Taylor & Francis, Abingdon
Abstract: 
This research examines whether stock liquidity affects the crash risk of stock price for companies listed on the Vietnamese stock market. Using a comprehensive dataset encompassing all stocks listed on the Ho Chi Minh Stock Exchange (HOSE) and the Hanoi Stock Exchange (HNX) from 2010 to 2022, we find that stock liquidity has a negative impact on stock price crash risk. Our findings are consistent with governance theory, which considers stock liquidity as a governance mechanism to discipline managers for hiding negative information, that could lead to stock price crashes. To the best of our knowledge, our paper is one of the initial studies to provide evidence regarding the impact of stock liquidity on stock price crash risk in the context of Vietnam. Thus, this study significantly contributes to the research literature on stock liquidity and crash risk in emerging markets. Furthermore, this research provides valuable insights for policymakers, authorities, managers, and investors, offering potential strategies for managing the crash risk of stock price.
Subjects: 
governance mechanism
regression model
stock liquidity
stock price crash risk
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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