Financial Reporting Quality and International Trade

This paper examines the effects of financial reporting quality on international trade. First, I conduct country-sector-level analyses and find that a one standard deviation increase in country is associated with increases manufacturing exports imports 4.2 3.5 percent, respectively. Second, exploit regulation change China use administrative firm-level trade data to differences-in-differences analyses. The results show treated firms export 15.1 percent more after reform. They also countries types goods change. provide evidence for two potential mechanisms these effects: (i) improved decreases information asymmetry between partners (ii) it facilitates raising external capital. extends understanding real economic disclosure provides link transparency global growth.