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Trade policy uncertainty and stock price crash risk: The role of geographic segment disclosure

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  • Abedalqader, Haneen
  • Chang, Shao-Chi

Abstract

This paper aims to examine how trade policy uncertainty (TPU) affects firm-specific stock price crash risk and the extent to which corporate disclosures and governance can mitigate this vulnerability. Using a global panel database of publicly listed firms from 17 countries over the period 2010–2023, we find a positive and significant relationship between TPU and stock price crash risk, suggesting that firms exposed to trade policy shocks are more vulnerable to sudden negative price movements. As a result of opacity, firms with less transparent geographical segment disclosure tend to hoard bad news, suggesting that opacity compounds this tendency. Furthermore, we investigate how segment reporting complexity, supply chain concentration, and governance mechanisms serve as moderating factors. We find that high segment reporting complexity and supply chain concentration exacerbate the TPU-crash risk relationship by increasing operational and informational opacity. The TPU-induced crash risk decreases with strong institutional ownership and enhanced analyst coverage, but increases with high information asymmetry. In light of rising global trade policy uncertainty, geographical segment disclosure, operational structure, and governance are crucial to moderating firm-level financial fragility.

Suggested Citation

  • Abedalqader, Haneen & Chang, Shao-Chi, 2026. "Trade policy uncertainty and stock price crash risk: The role of geographic segment disclosure," Global Finance Journal, Elsevier, vol. 69(C).
    • Handle: RePEc:eee:glofin:v:69:y:2026:i:c:s1044028325001589
    DOI: 10.1016/j.gfj.2025.101231
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