To enter the virtual seminar room, please use the following login credentials:
Zoom URL: https://uni-frankfurt.zoom.us/j/69545084263?pwd=OUxxSm9FTDlkNEliZ1c4NHY4MXA2dz09
Meeting ID: 695 4508 4263
We investigate the impact of uneven transparency regulation across countries and industries on the
location of economic activity. Using two distinct sources of regulatory variation—the varying extent
of financial-reporting requirements and the staggered introduction of electronic business registers in
Europe—, we consistently document that direct exposure to transparency regulation is negatively
associated with the focal industry’s economic activity in terms of inputs (e.g., employment) and
outputs (e.g., production). By contrast, we find that indirect exposure to supplier and customer
industries’ transparency regulation is positively associated with the focal industry’s economic activity.
Our evidence suggests uneven transparency regulation can reallocate economic activity from regulated
toward unregulated countries and industries, distorting the location of economic activity.