Journal article
Privacy regulation and firm performance: estimating the GDPR effect globally
- Abstract:
- This paper examines how privacy regulation shaped firm performance. Controlling for firm and country-industry-year unobserved characteristics, we compare the outcomes of firms at different levels of exposure to EU markets, before and after the enforcement of the General Data Protection Regulation (GDPR) in 2018. We find that the GDPR had the unintended consequence of harming the profitability of companies targeting European consumers through the cost channel. Technology firms experienced a 2.1% decline in profits, but not in sales. The GDPR increased extra expenses, added to firms wage bills, and accelerated patenting in GDPR-related technology fields. The main burdens have been borne by smaller companies.
- Publication status:
- Published
- Peer review status:
- Peer reviewed
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(Preview, Version of record, pdf, 781.4KB, Terms of use)
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- Publisher copy:
- 10.1111/ecin.13213
Authors
- Publisher:
- Wiley
- Journal:
- Economic Inquiry More from this journal
- Volume:
- 62
- Issue:
- 3
- Pages:
- 1074-1089
- Publication date:
- 2024-03-04
- Acceptance date:
- 2024-02-19
- DOI:
- EISSN:
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1465-7295
- ISSN:
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0095-2583
- Language:
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English
- Keywords:
- Pubs id:
-
1606595
- Local pid:
-
pubs:1606595
- Deposit date:
-
2024-01-25
- ARK identifier:
Terms of use
- Copyright holder:
- Frey and Presidente
- Copyright date:
- 2024
- Rights statement:
- © 2024 The Authors. Economic Inquiry published by Wiley Periodicals LLC on behalf of Western Economic Association International. This is an open access article under the terms of the Creative Commons Attribution License, which permits use, distribution and reproduction in any medium, provided the original work is properly cited.
- Licence:
- CC Attribution (CC BY)
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