Arbeitspapier
Capital gains taxation and funding for start-ups
We examine how capital gains taxes affect investment in start-up (i.e., pre-IPO) firms. Using data on capital raised by start-up firms in individual funding rounds, we estimate the effect of the SBJA of 2010, which implemented a full exemption from federal capital gains tax on the sale of qualified shares. Because of higher expected after-tax returns (lower future capital gains taxes), we hypothesize and find evidence consistent with this capital gains tax reduction increasing the amount of investment in start-up firms per funding round by about 12%. We also provide evidence that this effect is concentrated in start-up firms that are likely to be more financially sophisticated.
- Sprache
-
Englisch
- Erschienen in
-
Series: ZEW Discussion Papers ; No. 18-046
- Klassifikation
-
Wirtschaft
New Firms; Startups
Investment Banking; Venture Capital; Brokerage; Ratings and Ratings Agencies
Business Taxes and Subsidies including sales and value-added (VAT)
- Thema
-
Capital Gains Taxes
Start-ups
Tax Capitalization
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Edwards, Alexander
Todtenhaupt, Maximilian
- Ereignis
-
Veröffentlichung
- (wer)
-
Zentrum für Europäische Wirtschaftsforschung (ZEW)
- (wo)
-
Mannheim
- (wann)
-
2018
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:42 MEZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Edwards, Alexander
- Todtenhaupt, Maximilian
- Zentrum für Europäische Wirtschaftsforschung (ZEW)
Entstanden
- 2018
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