TY  - UNPD
A1  - Breuer, Matthias
A1  - Leuz, Christian
A1  - Vanhaverbeke, Steven
T1  - Reporting regulation and corporate innovation
T2  - LawFin working paper ; No. 8
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  - LawFin Working Paper - 8 
KW  - Financial Reporting
KW  - Disclosure
KW  - Regulation
KW  - Innovation
KW  - Patents
KW  - Growth
Y1  - 2020
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/61648
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30:3-616487
N1  - Another version of this paper is available at: Breuer, Matthias and Leuz, Christian and Vanhaverbeke, Steven, Reporting Regulation and Corporate Innovation (December 20, 2021). Center for Financial Studies Working Paper No. 675, 2021, Available at SSRN: https://ssrn.com/abstract=3990123 or http://dx.doi.org/10.2139/ssrn.3990123
EP  - 18
PB  - Center for Advanced Studies on the Foundations of Law and Finance, House of Finance, Goethe University
CY  - Frankfurt am Main
ER  -