Regulatory Intensity and Firm-Specific Exposure

• 成果类型: Article
• 署名作者: Kalmenovitz, Joseph
• 署名单位: University of Rochester
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhad001
• 发表日期: 2023
• 页码: 3311
• 关键词: POLITICAL-ECONOMY; REVOLVING-DOOR; uncertainty; MARKET; LAW; COMPETITION; incentives

摘要

Building on administrative data and machine-learning models, I develop a firm-specific measure of regulatory intensity: cost of compliance with all federal paperwork regulations. Regulatory intensity increases the cost of goods sold and overhead spending (SGA). It also incentivizes companies to reduce capital investment, hire fewer employees, and lobby more. The effects are particularly strong among financially constrained firms and those with irreversible investment opportunities, suggesting that regulation affects companies through budgetary pressures and heightened uncertainty. The findings highlight the real effects of regulation and the underlying mechanisms.