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

Antonio Accetturo, Audinga Baltrunaite, Gianmarco Cariola, Annalisa Frigo and Marco Gallo

No 20343, CEPR Discussion Papers from Centre for Economic Policy Research

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.

JEL-codes: G30 G38 M41 (search for similar items in EconPapers)
Date: 2025-06
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