Abstract
This paper uses a quality mandatory disclosure policy, the Nursing Home Quality Initiative (NHQI), to investigate how quality report cards affect firms' choices of multidimensional product quality. I show that after the introduction of NHQI: (1) the proportion of effort allocated to unreported dimensions decreases; (2) quality improves insignificantly along the reported dimensions, but deteriorates along the unreported ones; (3) there is no evidence that nursing homes increase quality-related inputs. These findings are consistent with the multitasking hypothesis that, rather than increasing effort for quality improvement, firms may respond to information disclosure by reallocating effort across dimensions of quality.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
