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The Value of Words: Evidence from Non-Financial Disclosure Regulation

Author

Listed:
  • Accetturo, Antonio
  • Baltrunaite, Audinga
  • Cariola, Gianmarco
  • Frigo, Annalisa
  • Gallo, Marco

Abstract

We examine the effects of laxer non-financial disclosure regulation on operating costs and access to external financing for micro firms in Italy. Starting in 2016, firms below certain size thresholds were exempted 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 policy adoption. However, the benefits of simplified reporting appear limited: in a regression discontinuity design that exploits the multidimensional size cut-offs that determine eligibility, we find no evidence of cost savings. We instead document a negative impact on ownership transfers and access to credit markets due to increased opacity, suggesting that the reduction of information disclosure to stakeholders may hinder business dynamism.

Suggested Citation

  • Accetturo, Antonio & Baltrunaite, Audinga & Cariola, Gianmarco & Frigo, Annalisa & Gallo, Marco, 2025. "The Value of Words: Evidence from Non-Financial Disclosure Regulation," CEPR Discussion Papers 20343, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:20343
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    File URL: https://cepr.org/publications/DP20343
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    More about this item

    JEL classification:

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

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