TY  - UNPD
A1  - Breuer, Matthias
A1  - Leuz, Christian
A1  - Vanhaverbeke, Steven
T1  - Reporting regulation and corporate innovation
T2  - Center for Financial Studies (Frankfurt am Main): CFS working paper series ; No. 675
N2  - We investigate the impact of reporting regulation on corporate innovation. Exploiting thresholds in Europe’s regulation and a major enforcement reform in Germany, we find that forcing firms to publicly disclose their financial statements discourages innovative activities. Our evidence suggests that reporting regulation has significant real effects by imposing proprietary costs on innovative firms, which in turn diminish their incentives to innovate. At the industry level, positive information spillovers (e.g., to competitors, suppliers, and customers) appear insufficient to compensate the negative direct effect on the prevalence of innovative activity. The spillovers instead appear to concentrate innovation among a few large firms in a given industry. Thus, financial reporting regulation has important aggregate and distributional effects on corporate innovation.
T3  - CFS working paper series - 675 
KW  - Innovation
KW  - Regulation
KW  - Disclosure
KW  - Financial Reporting
KW  - Patents
KW  - Growth
Y1  - 2021
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/63403
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30:3-634031
UR  - https://ssrn.com/abstract=3990123
N1  - Another version of this paper is available at: Breuer, Matthias and Leuz, Christian and Vanhaverbeke, Steven, Reporting Regulation and Corporate Innovation (August 26, 2020). LawFin Working Paper No. 8, Available at SSRN: https://ssrn.com/abstract=3449813 or http://dx.doi.org/10.2139/ssrn.3449813
PB  - Center for Financial Studies
CY  - Frankfurt, M.
ER  -