Spillover Effects of Financial Reporting on Public Firms' Corporate Investment: Evidence from Structural Estimation

I examine whether public firms' financial reporting has spillover effects on the amount and efficiency of other public firms' investment and quantify the relative importance of these indirect spillover effects vis-a-vis the direct effects due to firms' own financial reporting. Using s...

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Bibliographic Details
Published inSeoul Journal of Business Vol. 30; no. 2; pp. 81 - 155
Main Author Kim, Chongho
Format Journal Article
LanguageEnglish
Published Seoul Seoul National University, College of Business Administration 01.12.2024
경영연구소
Subjects
Capital expenditures
Efficiency
Estimates
Financial reporting
Investments
Productivity
Public companies
Spillover effect
경영학
United States > US
Online AccessGet full text
ISSN1226-9816
2713-6213
DOI10.35152/snusjb.2024.30.2.004

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Summary:I examine whether public firms' financial reporting has spillover effects on the amount and efficiency of other public firms' investment and quantify the relative importance of these indirect spillover effects vis-a-vis the direct effects due to firms' own financial reporting. Using structural estimation, I examine the effect of financial reporting on aggregate output from the public corporate sector's investment and estimate that a significant portion- roughly half of the total effect of financial reporting and a quarter of the marginal effect of an incremental change in financial reporting precision-is due to spillover effects.
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ISSN:1226-9816
2713-6213
DOI:10.35152/snusjb.2024.30.2.004