The Effect of Mandatory Extraction Payment Disclosures on Corporate Payment and Investment Policies Abroad

• 成果类型: Article
• 署名作者: Rauter, Thomas
• 署名单位: University of Chicago
• 刊物名称: JOURNAL OF ACCOUNTING RESEARCH
• ISSN/ISSBN: 0021-8456
• DOI: 10.1111/1475-679X.12332
• 发表日期: 2020
• 页码: 1075-1116
• 关键词: information; incentives; ECONOMICS; IMPACT; COSTS; FIRMS; OIL

摘要

I examine how mandatory extraction payment disclosures (EPD)-a policy solution intended to discourage corporate payment avoidance in the oil, gas, and mining industries-affect fiscal revenue contributions and investments by multinational firms in foreign host countries. Using the staggered adoption of EPD across firms headquartered in Europe and Canada, I find that disclosing companies increase their payments to host governments, decrease investments, and obtain fewer extraction licenses relative to non-disclosing competitors. These effects are stronger for firms that face a high risk of public shaming, operate in corrupt host countries, and have a high exposure to bribery-prone payments, suggesting that EPD increases the reputational cost of corporate behavior that could be perceived as exploitative. The resulting reallocation of investments from disclosing to non-disclosing firms reduces drilling productivity and resource production in host countries, consistent with uneven disclosure regulation distorting capital allocation.