Effects of Demand-driven Disclosures in Tax and Sustainability (B06)

• Subject Area: Operations Management and Computer Science for Business Administration
• Term: since 2019
• Project identifier: Deutsche Forschungsgemeinschaft (DFG) - Project number 403041268

Stakeholders increasingly voice their desire for transparency about corporate activities. This becomes obvious when considering, for example, the current push for sustainability reporting worldwide. Accordingly, Kronenberger and Simons (B06) investigate: How does the changing information environment for nonfinancial disclosures impact firms’ activities, such as production choices or ESG investments? Real effects are highly probable, because mandatory disclosure (as foreseen in the future) eliminates nondisclosure by bad firms. However, stricter regulation could reduce the possibility of signaling good news via voluntary disclosures simultaneously. Thus, an interesting regulatory trade-off is given. As such, the setting changes from positive to negative incentives of disclosure.

• DFG Programme: CRC/Transregios
• Subproject of: TRR 266: Accounting for Transparency
• Applicant Institution: Universität Paderborn
• Project Heads: Dr. Sebastian Kronenberger; Professorin Regina Ortmann, Ph.D., until 6/2023; Professor Dr. Dirk Simons