Based on a sample of venture capital (VC)-backed IPO firms, we examine whether tolerance for failure spurs corporate innovation. We develop a novel measure of VC investors' failure tolerance by ...examining their willingness to continue investing in underperforming ventures. We find that IPO firms backed by more failure-tolerant VC investors are significantly more innovative and VC failure tolerance is particularly important for ventures that are subject to high failure risk. We show that these results are not driven by endogenous matching between failure-tolerant VC firms and start-ups with high ex ante innovative potential. We also examine the determinants of the cross-sectional heterogeneity in a VC firm's failure tolerance. We find that both capital constraints and career concerns can negatively distort a VC firm's failure tolerance. Less experienced VC firms are more exposed to these distortions, making them less failure tolerant than are more established VC firms.
This paper investigates the different effects of political connections on the firm performance of state-owned enterprises (SOEs) and privately owned enterprises. Using data on Chinese listed firms ...from 1999 to 2007, we find that private firms with politically connected managers outperform those without such managers, whereas local SOEs with connected managers underperform those without such managers. Moreover, we find that private firms with politically connected managers enjoy tax benefits, whereas local SOEs with politically connected managers are prone to more severe over-investment problems. Our study reconciles the mixed findings of previous studies on the effect of political connections on firm performance.
Subject and purpose of work: The aim of this article is to review the current mechanisms of supporting the purchase of electric cars, with particular emphasis on tax reliefs and exemptions. Materials ...and methods: The research method consists of a review of literature, legal regulations and industry reports regarding the presented subject. Results: The authors analyzed the global electric car market, presenting the examples of the countries in which the share of electric vehicles has recently increased significantly in the total number of cars. In addition, current discounts and other preferences for the purchase of electric cars in European countries are presented together with future potential mechanism for buyers of electric in Poland. Conclusions: The price is the main economic determinate for buying the particular type of a car. The costs of acquiring and operating an electric car are currently higher than the costs for traditional combustion vehicles. However, the EU and European states’ authorities are processing to increase the popularity of electric cars, offering tax reliefs and other preferences with noticeably effects.
In the present article we are discussing the possibilities available for the employers in the coronavirus pandemic circumstances when their activity is restricted and they cannot (entirely) bear the ...employees related costs anymore. There are other possibilities that were not included in the article, such as pay cuts for a certain period of time, as a result of an agreement between the employee and the employer. The article is useful for all employers, regardless if they are a legal or a natural person who operates through one of the forms stated by law.
IT industry is noticeably distinguished by the tax support provided to it in the Russian economy. Nowadays software companies are treated as main contributors to national technological breakthrough ...being one of the main priorities of federal tax policy. Tax maneuver of 2021 significantly changed well-known tax rules, but some of novelties became a logical development of previously implemented measures. We systematize them by following our classification that introduces three main phases, all of which provided a qualitative update of the previous taxation framework, and for analysis consider particular reliefs as a unified, specific tax regime integrated in the general taxation system. The purpose of the article is to identify priorities and evaluate effectiveness of mechanisms designed to stimulate IT companies, including a preliminary assessment of valid perimeter and performance of the maneuver. Obtained results indicate that the tax regime initially given to software business had a bad design, an extremely narrow scope of beneficiaries and, due to this, a little effect on the IT industry; modernization of that design with the revision of basics was necessary at least in order to stop the decline of IT industry in the part of small companies. However, the main trend of recent tax policy demonstrates a strengthening of sustainable business with comparative fall of competitiveness of beginning entrepreneurs. In sum, the tax maneuver has a positive economic impact but covers, according to our estimates, less than 20% of IT companies.
The purpose of the paper is to review and evaluate selected tax burdens and reliefs between Slovakia and Ireland in relation to a specific type of globally successful innovative company introduced to ...scientific literature as “hidden champion” (HC) by Simon (1990). In the process of writing the work, the following methods of comparison, logical generalization, analysis, and synthesis were used. The results showed that both countries lack in providing specific regime in research and development (R&D), corporate income, and value-added tax (VAT) aspects to small and medium-sized enterprises (SMEs) (including HCs). Moreover, as reported by Ibec (2019), small companies face several challenges to their growth due to taxation. A parallel view on two countries (tax heaven and a classic approach country) provides a great prospect on all gaps in the taxation system. Although improvements are predicted and confirmed every second year, tax policy in the analyzed countries is not fully matched to current situations. The work reveals for the first time the fact that there are few specialized programs for SMEs, getting an exemption or applying for relief is difficult. In general, there is a lack of studies devoted to taxes within the concept of “hidden champions”. This paper contributes to this field from the perspective of policymaking, and it provides valuable insight for practice.
Tax Impact on Household Income Pavlova, Mariyana
Economics and Business,
8/2016, Letnik:
29, Številka:
1
Journal Article
Recenzirano
Odprti dostop
The household income is an important economic indicator because it determines the scale of the household sector consumption and its delay in future in terms of saving and investing. Many factors ...influence the magnitude of household income and one of these factors is taxation. Given the significance of tax payments not only for household income, and through them – for the national economy, the object of the current study is the household income and in particular the impact of the taxation framework on the formation of disposable income. The aim of the study is to examine the changes in the monetary income of households in the Republic of Bulgaria as a function of the implemented tax reforms in the period following the country’s accession to the EU.
The publicly funded screen development agency, Northern Ireland Screen, has been the key institutional actor in the exponential growth of the screen industries in Northern Ireland. The most prominent ...production to be based in Northern Ireland has been Home Box Office’s Game of Thrones, which had much of its eight seasons filmed in the region. Significant amounts of public finance have been offered to the screen industries, with direct funding provided to augment United Kingdom-wide tax breaks. However, there has been a lack of critical analysis of the recipients of this finance, on the precarious nature of many of the jobs that have been created, or on the stated benefits to the economy. This article subjects the role of Northern Ireland Screen to policy analysis to attempt to fill this scholarly gap. Setting the subject into the context of public support for film and television across the United Kingdom, it is argued that the economic argument for providing direct financial support to the screen industries needs to be viewed in the context of the overall impact on society.
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