Financial theory creates a puzzle. Some authors argue that high-risk entrepreneurs choose debt contracts instead of equity contracts since risky but high returns are of relatively more value for a loan-financed firm. Conversely, authors who focus explicitly on start-up finance predict that...

Abstract: The emergence of crowdfunding financing platforms provides a new solution to the financing difficulties of small and micro enterprises. In order to improve the financing performance of small and micro enterprises, existing studies mostly start from the aspects of the project itself,...