Financing Entrepreneurship: Tax Incentives for Early-Stage Investors

M. Denes, Xinxin Wang, Ting Xu
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引用次数: 6

Abstract

Governments often subsidize startups with the goal of spurring entrepreneurship using tax incentives. Exploiting the staggered implementation of angel investor tax credits in 31 U.S. states from 1988 to 2018, we find that these programs increase the number of angel investments and average investment size. However, additional investments flow to lower-quality startups that are launched by less experienced entrepreneurs. Despite short-run propping up due to tax credits, angel-backed firms subsequently perform poorly. We find evidence that entry of new inexperienced investors can explain these results. Overall, our findings suggest that state-level investor tax credits are ineffective in promoting high-quality entrepreneurship.
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创业融资:早期投资者的税收优惠
政府经常补贴创业公司,目的是通过税收优惠刺激创业。利用1988年至2018年美国31个州交错实施的天使投资者税收抵免,我们发现这些计划增加了天使投资的数量和平均投资规模。然而,额外的投资流向了由经验不足的企业家创办的质量较低的初创公司。尽管有税收抵免的短期支持,天使支持的公司随后表现不佳。我们发现证据表明,新的没有经验的投资者的进入可以解释这些结果。总体而言,我们的研究结果表明,州级投资者税收抵免在促进高质量创业方面是无效的。
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