An Empirical Study Of The Impact Of Fiscaland Tax Policies On The Scale Of Venture Capital

Venture capital has developed rapidly as an emerging investment method with the continuous improvement of the market economy in China in recent years.The vigorous development of venture capital not only helps provide financial support for high-tech enterprises in the early stage of establishing,but also helps exert its technological progress effect and talent pooling effect in the whole society.As one of the important economic instruments for macroeconomic regulation and control,fiscal and taxation policies have a very important impact on the behavioral decisions of venture capital institutions,venture capitalists and venture companies.Therefore,the Chinese government has gradually formulated and issued a series of fiscal and taxation policies aimed at promoting the development of venture capital industry,focusing on creating a sound economic and social environment for its healthy and rapid development.Appropriate tax incentives can exert its incentive effect and promote the scale of venture capital.The growth has been proven in economic theory and in the practice of countries.Venture capital industry has developed for more than 20 years in China.By the end of 2017,China has owned 8,863 venture capital institutions and managed 19,139 venture capital funds.However,at present,although China has introduced national and local taxation and taxation policies for venture capital industry,it is somewhat thinner than the urgent need for rapid development of venture capital.Therefore,in-depth study and analysis of China's fiscal and taxation policies have a theoretical and practical guiding significance for the specific impact of the venture capital industry.This dissertation collects and sorts out the fiscal and taxation policies issued by 29 provinces for venture capital institutions,and divides fiscal and taxation policies into three aspects: tax preferential policies,government guidance funds,and fiscal investment for venture capital.The impact of tax preferential policies,government guiding funds,and fiscal investment for venture capital inputs on the scale of venture capital was examined nationwide firstly by system GMM method.After that,the dissertation further divides 29 provinces into the eastern region,the central region and the western region to verify the impact of tax preferential policies,government guiding funds,and fiscal investment for venture capital on the scale of venture capital in various regions.Finally,this dissertation analyzes the influencing factors of the effect of tax preferential policies on the scale ofventure capital in three regions,and draws the following conclusions: National tax preferential policies have a positive impact on venture capital scale.However,government guidance funds have a inhibitory effect,and fiscal investment for venture capital has no significant impact on it.Tax preferential policies have significantly promoted the scale of venture capital in three respective regions,but the promotion intensity is different due to the different comprehensive environment(including tax preferential policies)that affects the scale of venture capital.Based on the above empirical research results,this dissertation puts forward three suggestions to optimize the fiscal and taxation policies issued by the government for the venture capital industry in light of the actual situation of China's venture capital industry development,in order to improve the development of venture capital scale in various regions of China.