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Reporting regulation: The impact on corporate innovation | VOX, CEPR Policy Portal


Petra Moser
Reporting regulation typically aims to improve the functioning of capital markets and to protect firms’ investors and other stakeholders. Despite substantial evidence of capital-market benefits from corporate disclosures (Healy and Palepu 2001), firms frequently oppose disclosure and reporting regulation, arguing that it forces them to reveal proprietary information to their competitors, customers, or suppliers. In particular, reporting regulation could make it harder for firms to reap the gains from innovation and, in turn, hurt their incentives to innovate (Arrow 1962).
How serious this concern is, however, remains unclear. For one, firms could point to proprietary costs to disguise that they oppose transparency for ulterior reasons (Berger and Hann 2007). Moreover, even if a mandate forces firms to reveal proprietary information, other firms benefit from these information spillovers (Zingales 2009). This redistribution could be beneficial in aggregate. For ....

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Friends of Land Between the Lakes sponsors April activities


The Friends of Land Between the Lakes have released its jam-packed programming for the month of April.
The group is inviting all home educating families to use the outdoors as a classroom for Homeschool Month during April at the Woodlands Nature Station.
Homeschooling families can pick up a “Nature Discovery Activity Book” at the Nature Station that will be able to guide children through a variety of exploration activities and teach about nature through various subjects.
The Nature Station is open everyday in April and books and activities are available from the station from 10 a.m. to 5 p.m.
The group has special programs specifically geared for homeschoolers scheduled throughout the weekdays and month. ....

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