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Les initiatives québécoises dans le domaine de la capitalisation des entreprises: Le point de vue des investisseurs

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  • Jean-Marc Suret

Abstract

Starting in 1976, the Quebec provincial government has introduced several programs and organisations with the objective of raising equity capital for companies; the Societes de developpement de l'entreprise quebecoise (SODEQ) were followed by the availability of the 'developing company' category under the QSSP and then by the Fonds de Solidarite ( FTQ). These programs were instigated in an attempt to diminish the 'small business under-capitalisation problem'. To attain this and encourage Quebec residents to invest more in equity securities, the government chose tax incentives. Nevertheless, unlike most tax incentive programs, these were not neutral; by changing the risk-return relationship of securities, the government provoked a redistribution of the savings of Quebec investors. In this study, we evaluate the effect of this redistribution on the wealth of investors and demonstrate that these investments had a very low return, even if the resulting deductions and credits are considered. In fact, the total cost of these programs for investors adds up to $200 millions.

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  • Jean-Marc Suret, 1990. "Les initiatives québécoises dans le domaine de la capitalisation des entreprises: Le point de vue des investisseurs," Canadian Public Policy, University of Toronto Press, vol. 16(3), pages 239-251, September.
    • Handle: RePEc:cpp:issued:v:16:y:1990:i:3:p:239-251
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    References listed on IDEAS

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