Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/185700
Authors: 
Bock, Carolin
Watzinger, Martin
Year of Publication: 
2017
Series/Report no.: 
Discussion Paper 30
Abstract: 
Our study analyzes the effect of the capital gains tax on the individual investment decisions of venture capitalists. By doing so, we are able to study the decisions for a sample of 76,852 funding rounds in 32 countries from 2000 to 2012. Our results support the predictions of the theoretical model that higher capital gains tax rates are associated with fewer start-ups financed and a lower probability of receiving follow-up funding. However, the results concerning the effect on the probability of success of start-ups show that a higher tax burden is associated with a higher probability of eventual start-up success.
Subjects: 
Venture Capital
Capital Gains Tax
Selection Effect
Follow-up Funding
Innovation
JEL: 
G24
H25
H32
Document Type: 
Working Paper
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