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The value of words: evidence from non-financial disclosure regulation

Author

Listed:
  • Antonio Accetturo

    (Bank of Italy)

  • Audinga Baltrunaite

    (Bank of Italy, CEPR)

  • Gianmarco Cariola

    (Bank of Italy)

  • Annalisa Frigo

    (Bank of Italy)

  • Marco Gallo

    (Bank of Italy)

Abstract

We examine the effects of less stringent non-financial disclosure regulation on operating costs and access to external financing for micro firms in Italy. Since 2016, firms below certain size thresholds have been exempt from filing reports with qualitative information that complements standard balance sheet items. Compliance rates were higher among older and more productive firms, in line with strategic considerations that play a role in influencing policy uptake. However, the benefits of simplified reporting appear limited: using a regression discontinuity design that exploits the multidimensional size cut-offs determining eligibility, we find no evidence of cost savings. Instead, we document a negative impact on ownership transfers and access to credit markets due to increased opacity, suggesting that reduced information disclosure to stakeholders may hinder business dynamism.

Suggested Citation

  • Antonio Accetturo & Audinga Baltrunaite & Gianmarco Cariola & Annalisa Frigo & Marco Gallo, 2025. "The value of words: evidence from non-financial disclosure regulation," Temi di discussione (Economic working papers) 1498, Bank of Italy, Economic Research and International Relations Area.
    • Handle: RePEc:bdi:wptemi:td_1498_25
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
    • K22 - Law and Economics - - Regulation and Business Law - - - Business and Securities Law
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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