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We study the welfare effects of the transition of online debt crowdfunding from the older “peer-to-peer” model to the “marketplace” model, where the crowdfunding platform sells diversified loan portfolios to investors. We develop an equilibrium model of debt crowdfunding and estimate it on a novel database from a large Chinese platform.
Moving from the peer-to-peer to the marketplace model raises lender surplus, platform profits, and credit provision. Moreover, reducing lender exposure to liquidity risk can be beneficial. A counterfactual where the platform resembles a bank by bearing liquidity risk generates larger lender surplus and credit provision when liquidity is low.
In this paper, we investigate whether reform of EU company law is needed to make corporate governance more sustainable through an analysis of some of the...
We use new data that measure forward-looking physical climate risk at the firm level to examine the impact of climate risk on capital structure. We find...