Effects of Mandatory Non-Financial Disclosure on non-financial performance in the EU
This research studies the effects of mandatory non-financial disclosure on the non-financial performance of firms in the EU. Existing literature showed mixed evidence regarding these non-financial disclosure mandates. This study provides new insights on non-financial disclosure mandates, especially the Non-Financial Reporting Directive by the European Commission. The sample consists of 747 unique firms based in EU-member states, as well as a control group consisting of 2,306 US firms. This study uses a Difference-in-differences approach to a regression model. The treatment effect of the NFRD is found to be significantly negative, and increasing over time. This negative treatment effect is strongest for the environmental pillar of non-financial performance.
Faculteit der Managementwetenschappen