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Public Firm Presence, Financial Reporting, and the Decline of U.S. Manufacturing
dc.contributor.authorGlaeser, Stephen
dc.contributor.authorOmartian, James D.
dc.date.accessioned2022-06-01T20:27:50Z
dc.date.available2023-07-01 16:27:49en
dc.date.available2022-06-01T20:27:50Z
dc.date.issued2022-06
dc.identifier.citationGlaeser, Stephen ; Omartian, James D. (2022). "Public Firm Presence, Financial Reporting, and the Decline of U.S. Manufacturing." Journal of Accounting Research 60(3): 1083-1128.
dc.identifier.issn0021-8456
dc.identifier.issn1475-679X
dc.identifier.urihttps://hdl.handle.net/2027.42/172783
dc.description.abstractWe examine the relation between public firm presence and import competition. The information created by public firm presence may provide importers with insights they can use for competing with domestic firms. Consistent with this possibility, we document a positive relation between public firm presence and import competition. We find similar results when using differences in the expected costs of the Sarbanes-Oxley Act as a source of plausibly exogenous variation in public firm presence after the act. We use differences in the proportion of German firms reporting publicly around a major enforcement reform as a natural mechanism experiment, and find evidence that financial reporting is a channel through which public firm presence relates to import competition. Additional mechanism tests and a falsification test estimated in the United Kingdom, where public and most private firms report publicly, further support this inference. In total, our evidence is consistent with foreign competitors using the information created by public firm presence, including what public firms disclose in financial reports, to compete with domestic firms. Consequently, our results provide evidence of competitors using the proprietary information disclosed in financial reports to compete with the disclosing firms and of information frictions affecting trade.
dc.publisherNational Bureau of Economic Research
dc.publisherWiley Periodicals, Inc.
dc.subject.otherprivate firms
dc.subject.otherpublic firms
dc.subject.otherfinancial reporting
dc.subject.otherproprietary costs
dc.subject.otherdisclosure externalities
dc.subject.othertrade
dc.subject.othercompetition
dc.titlePublic Firm Presence, Financial Reporting, and the Decline of U.S. Manufacturing
dc.typeArticle
dc.rights.robotsIndexNoFollow
dc.subject.hlbsecondlevelBusiness (General)
dc.subject.hlbtoplevelBusiness
dc.description.peerreviewedPeer Reviewed
dc.description.bitstreamurlhttp://deepblue.lib.umich.edu/bitstream/2027.42/172783/1/joar12411.pdf
dc.description.bitstreamurlhttp://deepblue.lib.umich.edu/bitstream/2027.42/172783/2/joar12411_am.pdf
dc.identifier.doi10.1111/1475-679X.12411
dc.identifier.sourceJournal of Accounting Research
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dc.owningcollnameInterdisciplinary and Peer-Reviewed


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