This paper analyzes a model of firms' decisions to publicly disclose information and investors' incentives to provide private capital to non-disclosing firms. In this model, (i) disclosure externalities and scope for welfare-improving policy interventions arise via a financing channel; (ii) interdependencies between firms' disclosure strategies emerge even if all information is independent across firms (i.e., without information spillovers); (iii) the equilibrium levels of disclosure and private capital provision are socially inefficient; and (iv), whereas mandatory disclosure rules are strictly worse than not having any regulation, taxes and subsidies on disclosing and supplying outside capital can improve efficiency.