Sometimes, Always, Never: Regulatory Clarity and the Development of Digital Financing

References

• Aghion P, Bolton P (1997) A theory of trickle-down growth and development. Rev. Econom. Stud. 64(2):151–172.Crossref, Google Scholar
• Austin PC (2011) Optimal caliper widths for propensity‐score matching when estimating differences in means and differences in proportions in observational studies. Pharm. Statist. 10(2):150–161.Crossref, Google Scholar
• Bailey W, Li H, Mao CX, Zhong R (2003) Regulation fair disclosure and earnings information: Market, analyst, and corporate responses. J. Finance 58(6):2487–2514.Crossref, Google Scholar
• Baker AC, Larcker DF, Wang CCY (2022) How much should we trust staggered difference-in-differences estimates? J. Financial Econom. 144(2):370–395.Crossref, Google Scholar
• Baker SR, Bloom N, Davis SJ (2016) Measuring economic policy uncertainty. Quart. J. Econom. 131(4):1593–1636.Crossref, Google Scholar
• Ball R, Robin A, Sadka G (2008) Is financial reporting shaped by equity markets or by debt markets? An international study of timeliness and conservatism. Rev. Accounting Stud. 13(2–3):168–205.Crossref, Google Scholar
• Banerjee A (2004) Contracting constraints, credit markets and economic development. Dewatripont M, Hansen LP, Turnovsky S, eds. Advances in Economics and Econometrics, Eighth World Congress, vol. 3 (Cambridge University Press, Cambridge, UK), 1–46.Google Scholar
• Banerjee AV, Newman AF (1993) Occupational choice and the process of development. J. Polit. Econom. 101(2):274–298.Crossref, Google Scholar
• Bernanke BS (1983) Irreversibility, uncertainty, and cyclical investment. Quart. J. Econom. 98(1):85–106.Crossref, Google Scholar
• Bhattacharya U, Hsu PH, Tian X, Xu Y (2017) What affects innovation more: Policy or policy uncertainty? J. Financial Quant. Anal. 52(5):1869–1901.Crossref, Google Scholar
• Bischof J, Daske H (2013) Mandatory disclosure, voluntary disclosure, and stock market liquidity: Evidence from the EU bank stress tests. J. Accounting Res. 51(5):997–1029.Crossref, Google Scholar
• Bloom N, Bond S, Van Reenen J (2007) Uncertainty and investment dynamics. Rev. Econom. Stud. 74(2):391–415.Crossref, Google Scholar
• Bloomfield RJ, Wilks TJ (2000) Disclosure effects in the laboratory: Liquidity, depth, and the cost of capital. Accounting Rev. 75(1):13–41.Crossref, Google Scholar
• Burgess R, Pande R (2005) Do rural banks matter? Evidence from the Indian social banking experiment. Amer. Econom. Rev. 95(3):780–795.Crossref, Google Scholar
• Callaway B, Sant’Anna PHC (2021) Difference-in-differences with multiple time periods. J. Econometrics 225(2):200–230.Crossref, Google Scholar
• Campbell JL, Chen H, Dhaliwal DS, Lu HM, Steele LB (2014) The information content of mandatory risk factor disclosures in corporate filings. Rev. Accounting Stud. 19(1):396–455.Crossref, Google Scholar
• Campello M, Cong LW, Dietrich D (2024) Regulatory uncertainty and FinTech innovation. Preprint, submitted June 25, https://dx.doi.org/10.2139/ssrn.4867378.Google Scholar
• CCAF and World Bank (2019) Regulating alternative finance: Results from a global regulator survey. Report, Cambridge Centre for Alternative Finance, University of Cambridge, Cambridge, UK.Google Scholar
• CCAF and World Bank (2022) The 3rd global Fintech regulator survey. Report, Cambridge Centre for Alternative Finance, University of Cambridge, Cambridge, UK.Google Scholar
• Chen Z, Dhaliwal DS, Xie H (2010) Regulation fair disclosure and the cost of equity capital. Rev. Accounting Stud. 15(1):106–144.Crossref, Google Scholar
• Choi JH, Hickman KE, Monahan A, Schwarcz D (2023) ChatGPT goes to law school. Preprint, submitted January 25, https://dx.doi.org/10.2139/ssrn.4335905.Google Scholar
• Cong L, Tang K, Xie D, Zhao W (2024) FinTech platforms and asymmetric network effects: Theory and evidence from marketplace lending. Preprint, submitted November 10, http://dx.doi.org/10.2139/ssrn.3461893.Google Scholar
• Demirgüç-Kunt A, Maksimovic V (1998) Law, finance, and firm growth. J. Finance 53(6):2107–2137.Crossref, Google Scholar
• Diamond DW (1984) Financial intermediation and delegated monitoring. Rev. Econom. Stud. 51(3):393–414.Crossref, Google Scholar
• Diamond DW, Verrecchia RE (1991) Disclosure, liquidity, and the cost of capital. J. Finance 46(4):1325–1359.Crossref, Google Scholar
• Djankov S, McLiesh C, Shleifer A (2007) Private credit in 129 countries. J. Financial Econom. 84(2):299–329.Crossref, Google Scholar
• Djankov S, La Porta R, Lopez-de-Silanes F, Shleifer A (2002) The regulation of entry. Quart. J. Econom. 117(1):1–37.Crossref, Google Scholar
• Djankov S, La Porta R, Lopez-de-Silanes F, Shleifer A (2008) The law and economics of self-dealing. J. Financial Econom. 88(3):430–465.Crossref, Google Scholar
• Easley D, O’Hara M (2009) Ambiguity and nonparticipation: The role of regulation. Rev. Financial Stud. 22(5):1817–1843.Crossref, Google Scholar
• Franks J, Serrano-Velarde N, Sussman O (2021) Marketplace lending, information aggregation, and liquidity. Rev. Financial Stud. 34(5):2318–2361.Crossref, Google Scholar
• Glushkov D, Khorana A, Rau PR, Zhang J (2018) Why do firms go public through debt instead of equity? Crit. Finance Rev. 7:85–110.Crossref, Google Scholar
• Gulen H, Ion M (2016) Policy uncertainty and corporate investment. Rev. Financial Stud. 29(3):523–564.Google Scholar
• Hammersley JS, Myers LA, Shakespeare C (2008) Market reactions to the disclosure of internal control weaknesses and to the characteristics of those weaknesses under Section 302 of the Sarbanes Oxley Act of 2002. Rev. Accounting Stud. 13(1):141–165.Crossref, Google Scholar
• Hansen AL, Kazinnik S (2023) Can ChatGPT decipher Fedspeak? Preprint, submitted April 7, https://dx.doi.org/10.2139/ssrn.4399406.Google Scholar
• Healy PM, Palepu KG (1993) The effect of firms’ financial disclosure strategies on stock prices. Accounting Horizons 7(1):1–11.Google Scholar
• Healy PM, Palepu KG (1995) The challenges of investor communication—The case of CUC International, Inc. J. Financial Econom. 38(2):111–140.Crossref, Google Scholar
• Healy PM, Palepu KG (2001) Information asymmetry, corporate disclosure, and the capital markets: A review of the empirical disclosure literature. J. Accounting Econom. 31(1–3):405–440.Google Scholar
• Healy PM, Hutton AP, Palepu KG (1999) Stock performance and intermediation changes surrounding sustained increases in disclosure. Contemp. Accounting Res. 16(3):485–520.Crossref, Google Scholar
• Hildebrand T, Puri M, Rocholl J (2017) Adverse incentives in crowdfunding. Management Sci. 63(3):587–608.Link, Google Scholar
• Indjejikian RJ (1991) The impact of costly information interpretation on firm disclosure decisions. J. Accounting Res. 29(2):277–301.Crossref, Google Scholar
• Iyer R, Khwaja AI, Luttmer EF, Shue K (2016) Screening peers softly: Inferring the quality of small borrowers. Management Sci. 62(6):1554–1577.Link, Google Scholar
• Jayaratne J, Strahan PE (1996) The finance-growth nexus: Evidence from bank branch deregulation. Quart. J. Econom. 111(3):639–670.Crossref, Google Scholar
• Jens CE (2017) Political uncertainty and investment: Causal evidence from US gubernatorial elections. J. Financial Econom. 124(3):563–579.Crossref, Google Scholar
• Julio B, Yook Y (2012) Political uncertainty and corporate investment cycles. J. Finance 67(1):45–83.Crossref, Google Scholar
• King RG, Levine R (1993) Finance and growth: Schumpeter might be right. Quart. J. Econom. 108(3):717–737.Crossref, Google Scholar
• Kroszner RS, Strahan PE (1999) What drives deregulation? Economics and politics of the relaxation of bank branching restrictions. Quart. J. Econom. 114(4):1437–1467.Crossref, Google Scholar
• Kroszner RS, Strahan PE (2011) Financial regulatory reform: Challenges ahead. Amer. Econom. Rev. 101(3):242–246.Crossref, Google Scholar
• Kydland FE, Prescott EC (1977) Rules rather than discretion: The inconsistency of optimal plans. J. Polit. Econom. 85(3):473–491.Crossref, Google Scholar
• La Porta R, Lopez-de-Silanes F, Shleifer A (2006) What works in securities laws? J. Finance 61(1):1–32.Crossref, Google Scholar
• La Porta R, Lopez-de-Silanes F, Shleifer A, Vishny RW (1997) Legal determinants of external finance. J. Finance 52(3):1131–1150.Crossref, Google Scholar
• La Porta R, Lopez-de-Silanes F, Shleifer A, Vishny RW (1998) Law and finance. J. Polit. Econom. 106(6):1113–1155.Crossref, Google Scholar
• La Porta R, Lopez-de-Silanes F, Shleifer A, Vishny RW (2000) Investor protection and corporate governance. J. Financial Econom. 58(1–2):3–27.Crossref, Google Scholar
• Leftwich R (1980) Market failure fallacies and accounting information. J. Accounting Econom. 2(3):193–211.Crossref, Google Scholar
• Leftwich R (1983) Accounting information in private markets: Evidence from private lending agreements. Accounting Rev. 58(1):23–42.Crossref, Google Scholar
• Li E, Martin JS (2019) Capital formation and financial intermediation: The role of entrepreneur reputation formation. J. Corporate Finance 59(6):185–201.Crossref, Google Scholar
• Lin M, Prabhala NR, Viswanathan S (2013) Judging borrowers by the company they keep: Friendship networks and information asymmetry in online peer-to-peer lending. Management Sci. 59(1):17–35.Link, Google Scholar
• Lopez-Lira A, Tang Y (2023) Can ChatGPT forecast stock price movements? Return predictability and large language models. Preprint, submitted April 15, https://arxiv.org/abs/2304.07619.Google Scholar
• Michels J (2012) Do unverifiable disclosures matter? Evidence from peer-to-peer lending. Accounting Rev. 87(4):1385–1413.Crossref, Google Scholar
• Mollick E (2014) The dynamics of crowdfunding: An exploratory study. J. Bus. Venturing 29(1):1–19.Crossref, Google Scholar
• Mollick E, Nanda R (2016) Wisdom or madness? Comparing crowds with expert evaluation in funding the arts. Management Sci. 62(6):1533–1553.Link, Google Scholar
• Pigou AC (1938) The Economics of Welfare, 4th ed. (Macmillan and Co., London).Google Scholar
• Rajan R, Zingales L (1998) Financial dependence and growth. Amer. Econom. Rev. 88(3):559–586.Google Scholar
• Rajan RG, Zingales L (2003) The great reversals: The politics of financial development in the twentieth century. J. Financial Econom. 69(1):5–50.Crossref, Google Scholar
• Rau PR (2020) Law, trust, and the development of crowdfunding. Working paper, University of Cambridge, Cambridge, UK.Google Scholar
• Robinson M, Versprille A (2022) BlockFi submitting to rules shows SEC tightening grip on crypto. Bloomberg (February 14), https://www.bloomberg.com/news/articles/2022-02-14/blockfi-s-plans-to-register-with-sec-augurs-new-era-for-crypto.Google Scholar
• Sidhu B, Smith T, Whaley RE, Willis RH (2008) Regulation fair disclosure and the cost of adverse selection. J. Accounting Res. 46(3):697–728.Crossref, Google Scholar
• Skinner DJ (1994) Why firms voluntarily disclose bad news. J. Accounting Res. 32(1):38–60.Crossref, Google Scholar
• Spatt CS (2010) An informal perspective on the economics and regulation of securities markets. Annu. Rev. Financial Econom. 2(1):127–143.Crossref, Google Scholar
• Staiger D, Stock JH (1997) Instrumental variables regression with weak instruments. Econometrica 65(3):557–586.Crossref, Google Scholar
• Strausz R (2017) A theory of crowdfunding: A mechanism design approach with demand uncertainty and moral hazard. Amer. Econom. Rev. 107(6):1430–1476.Crossref, Google Scholar
• Tang H (2019) Peer-to-peer lenders vs. banks: Substitutes or complements? Rev. Financial Stud. 32(5):1900–1938.Crossref, Google Scholar
• Vallee B, Zeng Y (2019) Marketplace lending: A new banking paradigm? Rev. Financial Stud. 32(5):1939–1982.Google Scholar
• Wei Z, Lin M (2017) Market mechanisms in online peer-to-peer lending. Management Sci. 63(12):4236–4257.Link, Google Scholar
• Yang KC, Menczer F (2023) Large language models can rate news outlet credibility. Preprint, submitted April 1, https://arxiv.org/abs/2304.00228.Google Scholar
• Zhang J, Liu P (2012) Rational herding in microloan markets. Management Sci. 58(5):892–912.Link, Google Scholar
• Ziegler T, Shneor R, Wenzlaff K, Wanxin Wang B, Kim J, Odorovic A, Ferri de Camargo Paes F et al. (2020) The global alternative finance market benchmarking report. Report, Cambridge Centre, Cambridge, UK.Google Scholar