Does information on reduced financing cost change firms' perception of sustainability reporting and its benefits?

Last registered on April 16, 2024
View Trial History

Pre-Trial

Trial Information

General Information

Title
Does information on reduced financing cost change firms' perception of sustainability reporting and its benefits?
RCT ID
AEARCTR-0013322
Initial registration date
April 08, 2024

Initial registration date is when the trial was registered.

It corresponds to when the registration was submitted to the Registry to be reviewed for publication.

First published
April 16, 2024, 1:09 PM EDT

First published corresponds to when the trial was first made public on the Registry after being reviewed.

Locations

Country
Germany
Region

Primary Investigator

Name
Marie-Theres von Schickfus
Affiliation
ifo Institute
Contact Primary Investigator

Other Primary Investigator(s)

Additional Trial Information

Status
In development
Start date
2024-04-09
End date
2024-09-30
Keywords
Environment & Energy, Finance & Microfinance, Firms & Productivity
Additional Keywords
Sustainability reporting, voluntary reporting, SMEs
JEL code(s)
D22, G18, L25, M48, Q52
Secondary IDs
Prior work
This trial does not extend or rely on any prior RCTs.
Abstract
We survey German firm managers on sustainability reporting. Under the current German and EU-level regulation, even firms falling below the official reporting threshold may be asked to report on sustainability, for instance by supply chain partners or banks. In deciding on whether and how extensively to report, firms thus need to weigh the costs and benefits of sustainability reporting.
In an information experiment, we introduce exogenous variation in the expected benefits of reporting. The treatment group receives information that firms disclosing CO2 emissions face lower costs for bank loans. (The control group receives generic information on the importance of bank loans for firms in Germany.) We then test whether this information changes how firms assess the benefits of reporting.


External Link(s)

Registration Citation

Citation
von Schickfus, Marie-Theres. 2024. "Does information on reduced financing cost change firms' perception of sustainability reporting and its benefits?." AEA RCT Registry. April 16. https://doi.org/10.1257/rct.13322-1.0
Sponsors & Partners
Experimental Details

Interventions

Intervention(s)
Intervention Start Date
2024-04-09
Intervention End Date
2024-04-19

Primary Outcomes

Primary Outcomes (end points)
- Perceived benefits of sustainability reporting
- Reported likelihood of (improved) sustainability reporting in the future
- Support for a policy reducing reporting costs
Primary Outcomes (explanation)
The perceived benefits of sustainability reporting are elicited in terms of access to finance and other economic outcome variables, and via a hypothetical "willingness to spend personnel resources" on sustainability reporting.

Secondary Outcomes

Secondary Outcomes (end points)
Secondary Outcomes (explanation)

Experimental Design

Experimental Design
- Sample is split into two groups of similar size. Each group receives information on bank financing.
- The control group receives generic information about the importance of bank financing for German firms.
- The treatment group receives information on reduced bank financing costs for firms disclosing CO2 emissions.
Experimental Design Details
Not available
Randomization Method
Randomization by computer (implemented in Qualtrics)
Randomization Unit
Firm
Was the treatment clustered?
No

Experiment Characteristics

Sample size: planned number of clusters
420 firms
Sample size: planned number of observations
420 firms
Sample size (or number of clusters) by treatment arms
210 firms control, 210 firms treatment
Minimum detectable effect size for main outcomes (accounting for sample design and clustering)
Supporting Documents and Materials
IRB

Institutional Review Boards (IRBs)

IRB Name
IRB Approval Date
IRB Approval Number
Analysis Plan