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How Firms Respond to Mandatory Information Disclosure

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Author Info

  • Anil R. Doshi

    ()
    (Harvard Business School)

  • Glen W.S. Dowell

    ()
    (Johnson School of Management, Cornell University)

  • Michael W. Toffel

    ()
    (Harvard Business School, Technology and Operations Management Unit)

Abstract

Mandatory information disclosure regulations seek to create institutional pressure to spur performance improvement. By examining how organizational characteristics moderate establishments' responses to a prominent environmental information disclosure program, we provide among the first empirical evidence characterizing heterogeneous responses by those mandated to disclose information. We find particularly rapid improvement among establishments located close to their headquarters and among establishments with proximate siblings, especially when the proximate siblings are in the same industry. Large establishments improve more slowly than small establishments in sparse regions, but both groups improve similarly in dense regions, suggesting that density mitigates the power of large establishments to resist institutional pressures. Finally, privately held firms' establishments outperform those owned by public firms. We highlight implications for institutional theory, managers, and policymakers.

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Bibliographic Info

Paper provided by Harvard Business School in its series Harvard Business School Working Papers with number 12-001.

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Length: 53 pages
Date of creation: Jul 2011
Date of revision: Jun 2012
Handle: RePEc:hbs:wpaper:12-001

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Related research

Keywords: information disclosure; institutional theory; environmental strategy; mandatory disclosure; environmental performance.;

This paper has been announced in the following NEP Reports:

References

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Citations

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Cited by:
  1. Baron, David P. & Harjoto, Maretno A. & Jo, Hoje, 2008. "The Economics and Politics of Corporate Social Performance," Research Papers 1993, Stanford University, Graduate School of Business.
  2. Markus Kitzmueller, 2008. "Economics and Corporate Social Responsibility," Economics Working Papers ECO2008/37, European University Institute.
  3. Timothy Simcoe & Michael W. Toffel, 2012. "Government Green Procurement Spillovers: Evidence from Municipal Building Policies in California," Harvard Business School Working Papers 13-030, Harvard Business School, revised Oct 2013.
  4. Jonathan T. Kolstad, 2013. "Information and Quality when Motivation is Intrinsic: Evidence from Surgeon Report Cards," NBER Working Papers 18804, National Bureau of Economic Research, Inc.
  5. Christopher Marquis & Michael W. Toffel, 2011. "Scrutiny, Norms, and Selective Disclosure: A Global Study of Greenwashing," Harvard Business School Working Papers 11-115, Harvard Business School, revised Dec 2013.
  6. Adler Miserendino, Rebecca & Bergquist, Bridget A. & Adler, Sara E. & Guimarães, Jean Remy Davée & Lees, Peter S.J. & Niquen, Wilmer & Velasquez-López, P. Colon & Veiga, Marcello M., 2013. "Challenges to measuring, monitoring, and addressing the cumulative impacts of artisanal and small-scale gold mining in Ecuador," Resources Policy, Elsevier, vol. 38(4), pages 713-722.
  7. Laura Spira & Michael Page, 2010. "Regulation by disclosure: the case of internal control," Journal of Management and Governance, Springer, vol. 14(4), pages 409-433, November.

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