Visiting researcher Nico Lehmann on how disclosure affects competition

On Wednesday, we welcomed Nico Lehmann from the Erasmus University Rotterdam in our Accounting Research Seminar (TRR 266 Accounting for Transparency Seminar series). In his very insightful presentation, he discussed whether the uneven disclosure regulations might harm the competitive position of regulated firms. Using a global sample of ESG disclosure mandates between 2003 and 2020, the paper provides evidence that contracts shift from public to private suppliers once the suppliers are subject to a disclosure mandate. His findings are in line with direct and indirect costs of the disclosure mandates as well a preference for ESG opaqueness on the customer side.

The paper is co-authored with Joerg-Markus Hitz and Peter Fiechter and is available here.