Public Taxation and Venture Capital Backed Entrepreneurship

Christian Keuschnigg and Søren Nielsen

University of St. Gallen Department of Economics working paper series 2003 from Department of Economics, University of St. Gallen

Abstract: In recent years, venture capital has increasingly become a factor in the financing of new firms. We examine how the value of mature firms determines the incentives of entrepreneurs to start up new firms and of venture capitalists to finance and advise them. We examine how capital gains taxes as well as subsidies to start-up costs of new firms affect venture capital backed entrepreneurship. We also argue that dividend and capital gains taxes on mature firms have important consequences for start-up firms as well.

Keywords: Taxes; venture capital; entrepreneurship; double moral hazard (search for similar items in EconPapers)
JEL-codes: D82 G24 H24 H25 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2003-09
New Economics Papers: this item is included in nep-cfn, nep-ent, nep-pbe, nep-pol and nep-tid
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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