IDEAS home Printed from https://ideas.repec.org/a/taf/oabmxx/v10y2023i3p2277481.html
   My bibliography  Save this article

Stock liquidity and stock price crash risk: Evidence from Vietnam

Author

Listed:
  • Ngoc Bao Dinh
  • Hy Nguyen Song Tran

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.

Suggested Citation

  • Ngoc Bao Dinh & Hy Nguyen Song Tran, 2023. "Stock liquidity and stock price crash risk: Evidence from Vietnam," Cogent Business & Management, Taylor & Francis Journals, vol. 10(3), pages 2277481-227, December.
    • Handle: RePEc:taf:oabmxx:v:10:y:2023:i:3:p:2277481
    DOI: 10.1080/23311975.2023.2277481
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/23311975.2023.2277481
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/23311975.2023.2277481?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:oabmxx:v:10:y:2023:i:3:p:2277481. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://cogentoa.tandfonline.com/OABM20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.