The disclosure requirements for firms issuing equity on German crowdinvestingplatforms are quite lax at the moment. This paper states that this loose requirement policy is not optimal in the presence of competition among platforms. First, a simple three-staged theoretical model is derived to...

External corporate financing typically involves contracts presenting a majority of the financial risks of the entrepreneurial activity on the entrepreneur. In academic literature, this one-sided risk allocation is usually justified by the informational advantages and unobservable actions of the...

External corporate financing typically involves contracts presenting a majority of the financial risks of the entrepreneurial activity on the entrepreneur. In academic literature, this one-sided risk allocation is usually justified by the informational advantages and unobservable actions of the...