Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/74650
Authors: 
Mäschle, Oliver
Year of Publication: 
2012
Series/Report no.: 
Thünen-Series of Applied Economic Theory 127
Abstract: 
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 demonstrate that competition among the platforms should result in a maximization of disclosure requirements. Second, characteristics about firms and entrepreneurs that should be revealed are identified because they have an empirically verified effect on the risk-return-profile of a company. Third, a recommendation for the practical implementation of improved disclosure requirements is offered.
Subjects: 
crowdinvesting
market microstructure
disclosure requirements
equity
asymmetric information
entrepreneur
JEL: 
G32
L15
L10
L50
D40
Document Type: 
Working Paper

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