This paper studies whether and how mandatory nonfinancial disclosure affects firms’ real decisions. I exploit a disclosure regulation enacted in California, which mandates that firms disclose how they conduct due diligence to address their suppliers’ human rights abuses. I find that treated...

The U.S. Securities and Exchange Commission (“SEC”) Regulation S-K requires supplier firms to disclose information on their major customers in the segment reports of 10-K filings. Given the increasing importance of environmental, social, and governance (“ESG”) for supplier-customer...