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

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

No 1498, Temi di discussione (Economic working papers) from Bank of Italy, Economic Research and International Relations Area

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.

Keywords: non-financial disclosure; regulation; corporate accounts; access to credit (search for similar items in EconPapers)
JEL-codes: G30 G38 K22 M41 (search for similar items in EconPapers)
Date: 2025-10
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