Lars Hornuf

Lars Hornuf
Universität Bremen | Uni Bremen · Business Studies and Economics

Ph.D. in Economics, M.A. in Political Economy

About

128
Publications
59,679
Reads
How we measure 'reads'
A 'read' is counted each time someone views a publication summary (such as the title, abstract, and list of authors), clicks on a figure, or views or downloads the full-text. Learn more
2,443
Citations
Additional affiliations
February 2008 - March 2016
Ludwig-Maximilians-University of Munich
Position
  • PostDoc Position

Publications

Publications (128)
Article
Full-text available
We examine investor behavior on a leading peer-to-business lending platform and identify an investment mistake that we refer to as default shock bias. First, we find that investors stop investing in new loans and cease diversifying their portfolio after experiencing a loan default. The default shock significantly worsens the risk–return profile of...
Article
Full-text available
We study the extent of fraud in initial coin offerings (ICOs), and whether information disclosure prior to the issuance predicts fraud. We document different types of fraud, and that fraudulent ICOs are on average much larger than the sample average. Issuers who disclose their code on GitHub are more likely to be targeted by phishing and hacker act...
Article
We use data on individual investment decisions to analyze whether investors in equity crowdfunding direct their investments to local firms and whether specific investor types can explain this behavior. We then examine whether investments exhibiting a local bias are more or less likely to fail. We show that investors exhibit a local bias, even when...
Article
Full-text available
Fraud in the reward-based crowdfunding market has been of concern to regulators, but it is arguably of greater importance to the nascent industry itself. Despite its significance for entrepreneurial finance, our knowledge of the occurrence, determinants, and consequences of fraud in this market, as well as the implications for the business ethics l...
Article
Full-text available
In this article, we examine how investor motives affect investment behavior in equity crowdfunding. In particular, we compare the investment behavior of sustainability-oriented with ordinary crowd investors on six leading equity crowdfunding platforms in Austria and Germany and investigate whether they suffer from a default shock that was recently...
Article
Full-text available
The increasing pervasiveness of technology-driven firms that offer financial services has led to growing pressure on traditional banks to modernize their core business activities and services. Many banks tackle the challenges of digitalization by cooperating with startup firms that offer technology-driven financial services and novel service packag...
Article
Research Summary When evaluating Internet-based loan project of small and medium size firms (SME), lenders can rely on easy-to-understand risk ratings or more sophisticated financial information. We investigate lenders decisions and its effect on loan funding success on the marketplace lending platform Zencap. The dataset has been provided by the p...
Article
Full-text available
Entrepreneurial finance markets are in a dynamic state. New market niches and players have developed and continue to emerge. The rules of the game and the methods for receiving financial backing have changed in many ways. This editorial and the special issue of Small Business Economics focus on crowdfunding (CF) and initial coin offerings (ICOs), w...
Article
A common assumption is that entrepreneurs retain more control of their venture when opting for crowdinvesting rather than venture capital. In this article, we investigate the relevance of cash-flow, control, and exit rights awarded to crowd investors in Germany, where more flexible contracts are offered than in many other jurisdictions. In Germany,...
Article
This article analyzes how the General Data Protection Regulation (GDPR) has affected the privacy practices of FinTech firms. We study the content of 308 privacy statements respectively before and after the GDPR became binding. Using textual analysis methods, we find that the readability of the privacy statements has decreased. The texts of privacy...
Article
Full-text available
During the past decade, equity crowdfunding (ECF) has emerged as an alternative funding channel for startup firms. In Germany, the Small Investor Protection Act became binding in July 2015, with the legislative goal to protect investors engaging in this new asset class. Since then, investors pledging more than 1,000 EUR now must self-report their i...
Preprint
Full-text available
During the past decade, equity crowdfunding (ECF) has emerged as an alternative funding channel for startup firms. In Germany, the Small Investor Protection Act became binding in July 2015, with the legislative goal to protect investors engaging in this new asset class. Since then, investors pledging more than 1,000 EUR now must self-report their i...
Article
Full-text available
The digitalization of financial services opened a window for new players in the financial industry. These start-ups take on tasks and functions previously reserved for banks, such as financing, asset management, and payments. In this article, we trace the transformation of the industry after digitalization. By using data on FinTech formations in Ge...
Presentation
Full-text available
Fraud in reward-based crowdfunding market has been of concern to regulators, but it is arguably of greater importance to the nascent industry itself. Using a sample of more than 270,000 crowdfunding campaigns posted from 2010 through 2018 on Kickstarter, the largest global reward-based crowdfunding platform, and exploiting an event study like metho...
Chapter
This chapter analyzes the potential need for regulation in the German FinTech market. To this end, theoretical considerations and insights from expert interviews are discussed. Both our theoretical findings and the expert interviews suggest that further regulation of many details around FinTechs is necessary and that this particularly applies to as...
Chapter
This chapter deals with data protection regarding FinTech services and how FinTechs dealt with it after the implementation of the GDPR in May 2018. The primary source of information on how FinTechs are handling data protection is the privacy statements of the respective companies. We analyzed these privacy statements with regard to three questions:...
Chapter
This chapter uses theoretical considerations and insights from expert interviews to analyze four different aspects of FinTech business models. First, we analyze the FinTechs’ cooperation with banks and find that both sides can usually profit from cooperation, while in practice cooperation also can fail. In a second step, we investigate the use of b...
Chapter
This chapter analyzes the development and current status of the German FinTech market. In particular, it outlines the different segments and subsegments of the FinTech industry. It further provides descriptive statistics on market volume for each segment, discusses general trends, and analyzes current market developments.
Chapter
The chapter summarizes the results of this book in the form of eleven theses. The theses are based on the evaluation of the privacy statements of FinTechs operating in Germany, the evaluation of 36 expert interviews, and the theoretical and empirical arguments presented in the previous chapters. They provide pointed statements for discussions on th...
Chapter
This chapter deals with data protection regarding FinTech services and how FinTechs dealt with it before the implementation of the GDPR in May 2018. The primary source of information on how FinTechs handled data protection is the privacy statements of the respective companies. We analyze these privacy statements with regard to three questions: What...
Chapter
In diesem Kapitel werden die Entwicklung und der aktuelle Stand des deutschen FinTech-Marktes dargestellt. Die Erkenntnisse basieren maßgeblich auf den beiden Publikationen von Dorfleitner et al. (2017) und Dorfleitner et al. (2018).
Chapter
Abschließend fassen wir die Ergebnisse des vorliegenden Buches in Form von elf Thesen zusammen. Diese Thesen basieren sowohl auf der Auswertung der Datenschutzerklärungen in Deutschland tätiger FinTechs als auch auf der Auswertung der Experteninterviews sowie den in den vorangegangenen Kapiteln geführten theoretischen und empirischen Argumentatione...
Chapter
Dieses Kapitel beschäftigt sich mit dem Datenschutz bei FinTech-Dienstleistungen. Eine Primärquelle für den Umgang mit dem Thema Datenschutz durch FinTechs sind die Datenschutzerklärungen der jeweiligen Unternehmen. Diese wurden in einem ersten Schritt daraufhin ausgewertet, welche Daten von Nutzerinnen und Nutzern erhoben werden, an wen diese Date...
Chapter
Ob es bezüglich des Datenschutzes inhaltlichen Regulierungsbedarf gibt, kann im Rahmen dieses Buches nicht geklärt werden und bleibt dem Urteil juristischer Untersuchungen überlassen. Fest steht jedoch, dass die DS-GVO und auch die geplante ePrivacy-Verordnung, die die Richtlinie für elektronische Kommunikation (RL 2002/58/EG) und die sogenannte Co...
Chapter
Dieses Kapitel beschäftigt sich mit verschiedenen Aspekten von FinTech-Geschäftsmodellen. Zunächst analysieren wir die Kooperation der FinTechs mit den Banken. In einem zweiten Schritt wird der Einsatz von Big Data bei FinTechs untersucht. Insbesondere werden bereits bekannte Einsatzfelder und Anwendungen von Big Data bei FinTechs beschrieben und z...
Chapter
Dieses Kapitel beschäftigt sich mit dem Datenschutz bei FinTech-Dienstleistungen nach Einführung der DS-GVO und bildet den Hauptteil dieses Buches. Als Datenquelle wurden wie bereits in Dorfleitner und Hornuf (2018) die Datenschutzerklärungen der jeweiligen FinTechs herangezogen. Um Veränderungen in der Zeit vor und nach Einführung der DS-GVO zu un...
Article
Full-text available
We investigate the economic and technological determinants inducing entrepreneurs to establish ventures with the purpose of reinventing financial technology (fintech). We find that countries witness more fintech startup formations when the economy is well-developed and venture capital is readily available. Furthermore, the number of secure Internet...
Article
Full-text available
Historically, people have often expressed negative feelings toward speculators, a sentiment that might have even been reinforced since the latest financial crisis, during which taxpayer money was warranted or spent to bail out reckless investors. In this paper, we conjecture that judges may also have anti-speculator sentiment, which might affect th...
Article
Full-text available
Ever since 2004 companies located in Member States of the European Economic Area have been able to opt to incorporate in a supranational legal form, the Societas Europaea. We found that companies located in Member States where the Societas Europaea offers additional legal arbitrage opportunities benefit most. Moreover, our results show that the sto...
Article
Full-text available
Using an artefactual field experiment, this paper tests the long-term implications of living in a specific economic system on individual dishonesty. By comparing cheating behaviour across individuals from the former socialist East of Germany with those of the capitalist West of Germany, we examine behavioural differences within a single country. We...
Book
Digitale Finanztechnologie, kurz FinTech, ist eine wichtige Antriebsfeder für Innovationen in der Finanzbranche. Die umfassende Verarbeitung von Nutzerdaten birgt aber auch das Potential unternehmerischer und systemischer Risiken, die eine effektive Aufsicht und Regulierung notwendig machen. In diesem Buch stellen die Autoren zunächst die am Markt...
Book
This book examines the FinTech revolution from a data privacy perspective. It analyzes key players on the FinTech market and the developments in various market segments. Particular attention is paid to an empirical analysis of the privacy statements of 505 German FinTech firms and how they were adapted after the General Data Protection Regulation (...
Chapter
This chapter presents insights into the question whether followers’ perceptions of authentic leadership attenuate cheating. From the perspective of self-concept maintenance theory, followers will cheat so long as they can maintain a positive self-concept. We suggested that authentic leadership lowers the perceptual threshold under which followers c...
Article
Full-text available
Research Question/Issue Today, startups frequently obtain financing via the Internet through many small contributions of non‐sophisticated investors. Yet, little is known whether these startups can ultimately build enduring businesses. This study investigates the determinants of follow‐up funding and firm failure after an equity crowdfunding campai...
Preprint
Full-text available
In this study, we investigate whether and to what extent community managers in online collaborative communities can stimulate crowd activities through their engagement. Using a novel data set of 22 large online idea crowdsourcing campaigns, we find that active engagement of community managers positively affects crowd activities in an inverted U-sha...
Presentation
The increasing pervasiveness of technology-driven firms that offer banking services has led to a growing pressure on traditional banks to modernize their core business activities. Banks attempt to confront the challenges of digitalization by cooperating with fintechs in various forms. In this paper, we investigate the factors that drive banks to fo...
Article
The present Article aims to shed light on the question whether crowdinvesting regulation should favor a specific legal form or contract type for crowdinvesting. To this end, it analyzes the conditions which legal forms and contract types must fulfill to be used in crowdinvesting. As crowdinvesting in Germany benefits from a high degree of contractu...
Article
Full-text available
In crowdfunding, start-ups can voluntarily communicate with their investors by posting updates. We investigate whether start-ups strategically use updates, which have previously been shown to increase investments. To this end, we use hand-collected data from 751 updates and 39,036 investment decisions from two major German equity crowdfunding porta...
Article
Full-text available
The introduction of the Euro ushered in a rise to dominance of English contract law in European debt securities. Corporate issuers in the Euro zone chose English law significantly more often than a control group from other European countries. The Euro effect on choice of law is particularly strong for debt securities in local markets that, arguably...
Book
This book focuses on various types of crowdfunding and the lessons learned from academic research. Crowdfunding, a new and important source of financing for entrepreneurs, fills a funding gap that was traditionally difficult to close. Chapters from expert contributors define and carefully evaluate the various market segments: donation-based and rew...
Article
Full-text available
Start-ups often post updates during equity crowdfunding campaigns. However, little is known about the effects of such updates on crowd participation. We investigate this question by using hand-collected data from 71 funding campaigns and 39,399 investment decisions on two German equity crowdfunding portals. Using a combination of different empirica...
Article
The Internet-based crowdinvesting market in Europe has developed significantly since its start in 2007 and has become an alternative source of finance for entrepreneurs to sell securities through the Internet to small investors. This market evidences a great variety in platform design and contract forms used by crowdinvesting platforms. By analyzin...
Presentation
Using Kickstarter and Indiegogo, the two largest crowdfunding platforms, we conduct an exhaustive search of all fraud cases from 2010 through 2015, spanning nine countries. While fraud in this new financial market has been a concern of many regulators, it is arguably of greater importance for the nascent industry itself. Should the crowdfunding mar...
Presentation
The increasing pervasiveness of information technology in the banking sector leads to growing pressure on banks to modernize their business model. An increasing number of banks is attempting to meet the new requirements by interacting with fintechs. In this paper, we identify which drivers play a role in both the occurrence of bank-fintech interact...
Article
Full-text available
In this paper, we show that too strong investor protection may harm small firms and entrepreneurial initiatives, which contrasts with the traditional “law and finance” view that stronger investor protection is better. This situation is particularly relevant in equity crowdfunding, which refers to a recent financial innovation originating on the Int...
Article
Full-text available
Equity crowdfunding is a new form of entrepreneurial finance, in which investors do not receive perks or engage in pre-purchase of the product, but rather participate in the future cash flows of a firm. In this paper, we analyze what determines individual investment decisions in this new financial market. One important factor that may influence the...
Article
Full-text available
We analyze the pricing of cash flow rights in start-up companies using a unique data set of 44 equity crowdfunding campaigns. Our sample consists of 499 backers who invested during the period from November 6, 2011, to March 25, 2014, on the German equity crowdfunding portal Innovestment. In contrast with all other European equity crowdfunding porta...
Chapter
Full-text available
Currently there is not a universally accepted definition of the term “FinTech.” The following section provides a brief survey of its use within existing scholarly literature. A definition is formed by means of a general description of the characteristics of FinTechs and an enumeration of the individual segments that make up the FinTech market.
Chapter
In order to assess the significance of previous findings in this book regarding the development of the market size, drivers of growth, and future projections of the German FinTech market in the academic context, the following section will provide a brief overview of the national and international academic literature. This overview will survey the r...
Chapter
In order to assess not only the present but also the future importance that FinTech companies will have for the German market, we provide a forecast of the size of the FinTech market for the next 5, 10 and 20 years. Despite the current media presence of the FinTech industry, our empirical study shows that it currently has a small volume relative to...
Chapter
The design of this study and the methodology used are described below. The first step was to identify the relevant German FinTech companies and to assign them to the various segments. FinTechs that had their company headquarters in Germany in April 2016 or were involved in significant activity in Germany are regarded as relevant. The FinTech busine...
Chapter
In the following, we provide overview of the entire German FinTech market. Subsequently, general trends of the FinTech industry are described, and market sizes and developments within the respective subsegments are analyzed.
Chapter
A look at the global FinTech markets and the number of newly created FinTech businesses shows that Germany is in fifth place behind the US, the UK, Canada and India (Haddad and Hornuf 2016). However, the study conducted by Haddad and Hornuf (2016) focuses on the European market, since the representativeness of the data regarding Asia provided by Cr...
Article
This book focuses on market developments of crowdfunding, crowdinvesting, crowdlending, social trading, robo-advice, personal financial management, online payment and mobile payment in Germany. FinTech companies are an important driver of innovation in the financial industry. By making financial transactions more user-friendly and transparent, thes...