Theories, practices, and prospects of alternative finance

Alternative finance based on social and business networks reaches back far into history. Despite the modern development of banks and financial markets, on a global scale, it remains prevalent and continually transforms with technological advancements. Its macroeconomic value and competitiveness over financing through formal institution differ across countries, industries, and firms, depending on the informational and institutional environment, power organization, and contractual enforcement in each society. This chapter introduces the chapters comprising the Research Handbook on Alternative Finance, examining theories, practices, and prospects of alternative finance. The chapters are organized by the underlying networks—business, social, and virtual—within which alternative finance take place; focusing on mechanism, values, constraints, and development dynamics. The chapters also explore alternative finance’s intrinsic advantages, international comparisons, cultural influences etc., along these dimensions.