@techreport{Kanniainen2005start,
abstract = {Early-stage uncertainty makes the initial cost of capital greater than the expansion-stage one.
Tax effects on enterprise formation, entrepreneurial effort and quality, and on capital costs are
derived. For an incorporated enterprise (i) the entrepreneur?s ability threshold rises with the
tax rate of the corporate form, (ii) the initial cost of capital due to a dividend tax is above the
old view double-tax one, (iii) the start-up investment is not affected by undervaluation, but the
discouragement engendered by dividend taxation is compensated by realization-based capital
gains tax, (iv) with undervaluation, the expansion-stage cost of capital corresponds to the
Johansson-Samuelson tax which is lower than the new view suggests, (v) without
undervaluation, the dividend tax boosts expansion investment.},
author = {Vesa Kanniainen and Seppo Kari and Jouko Yl\"{a}-Liedenpohja},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {H25; 330; taxation of start-up enterprises; Unternehmensgr\"{u}ndung; Unternehmensbesteuerung; Dividende; Kapitalkosten; Theorie},
language = {eng},
number = {1476},
title = {The start-up and growth stages in enterprise formation : the"new view" of dividend taxation reconsidered},
type = {CESifo working papers},
url = {http://hdl.handle.net/10419/18940},
year = {2005}
}
