Finance Seminar with Michelle Lowry, LeBow College of Business, Drexel University

Michelle Lowry will present:

Regulatory Fragmentation

ABSTRACT:
Regulatory fragmentation occurs when multiple federal agencies oversee a single issue. Anecdotal evidence suggests that this fragmentation imposes a costly burden on companies. Using the full text of the Federal Register, the government’s official daily publication, we provide the first systematic evidence on the extent and costs of regulatory fragmentation. We find that regulatory fragmentation increases the firm’s costs while lowering its productivity, profitability, and growth. Our results uncover a new source of regulatory burden, highlighting the substantial economic price companies pay when regulatory oversight is fragmented across multiple government agencies.

Location:
Solbjerg Plads 3
2000 Frederiksberg
Room: SPs07