The capital gains tax: A curse but also a blessing for venture capital investment
This article documents a statistical association between the number and success of venture capital investments and the capital gains tax rate. To do this, we analyze investment data and taxes of 32 countries from 2000 to 2010. In our data, higher capital gains tax rates are associated with fewer firms financed and a lower probability for ventures receiving follow-up funding. However, if the first investment is received when taxes are high, the probability of a firm eventually going public or being acquired increases. We conclude that high tax rates are associated with fewer, but on average more successful companies.
|Date of creation:||2011|
|Date of revision:|
|Contact details of provider:|| Postal: Arcisstr. 21, 80333 München|
Fax: 089 289 25070
Web page: http://www.cefs.de/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Marco Da Rin & Giovanna Nicodano & Alessandro Sembenelli, 2004.
"Public Policy and the Creation of Active Venture Capital Markets,"
270, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
- Da Rin, Marco & Nicodano, Giovanna & Sembenelli, Alessandro, 2006. "Public policy and the creation of active venture capital markets," Journal of Public Economics, Elsevier, vol. 90(8-9), pages 1699-1723, September.
- Da Rin, Marco & Nicodano, Giovanna & Sembenelli, Alessandro, 2005. "Public policy and the creation of active venture capital markets," Working Paper Series 0430, European Central Bank.
- Da Rin, M. & Nicodano, G. & Sembenelli, A., 2006. "Public policy and the creation of active venture capital markets," Other publications TiSEM 94370b9a-a6ac-444d-85a2-2, Tilburg University, School of Economics and Management.
- Gompers, Paul & Kovner, Anna & Lerner, Josh & Scharfstein, David, 2008.
"Venture capital investment cycles: The impact of public markets,"
Journal of Financial Economics,
Elsevier, vol. 87(1), pages 1-23, January.
- Paul Gompers & Anna Kovner & Josh Lerner & David Scharfstein, 2005. "Venture Capital Investment Cycles: The Impact of Public Markets," NBER Working Papers 11385, National Bureau of Economic Research, Inc.
- Becker, Ralf & Hellmann, Thomas F., 2000.
"The Genesis of Venture Capital: Lessons from the German Experience,"
1705, Stanford University, Graduate School of Business.
- Ralf Becker & Thomas Hellmann, 2003. "The Genesis of Venture Capital - Lessons from the German Experience," CESifo Working Paper Series 883, CESifo Group Munich.
When requesting a correction, please mention this item's handle: RePEc:zbw:cefswp:201104. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - German National Library of Economics)
If references are entirely missing, you can add them using this form.