Using a vertical-cavity surface-emitting laser (VCSEL) equivalent circuit model based on two carrier rate equations to include effects of carrier dynamics, we study the impact of carrier transport and capture on the small-and largesignal modulation response of high-speed VCSELs. The model also accounts for parasitics, current-induced self-heating, and gain compression. A variation of the effective capture time from 1 to 15 ps is found to have a large impact on the small-signal modulation response, with the 3 dB bandwidth decreasing from 40 to 15 GHz and the response transitioning from under-damped to overdamped. This is primarily due to the increasing low frequency parasitic-like roll-off with increasing effective capture time. A significant effect on the optical waveforms produced by the VCSEL under 56 Gbit/s on-off keying (OOK) non-return-to-zero (NRZ) and pulse-amplitude modulation 4 (PAM4) modulation is observed, with a short effective capture time leading to horizontal eye closure caused by timing jitter (TJ) and intersymbol interference (ISI) and a long effective capture time leading to vertical eye closure caused by long rise-and fall-times. However, for high modulation speed, a short effective capture time is needed and the photon lifetime should be set for clear eye opening. We also show the impact of the effective capture time on the output power vs current characteristics and map the dependence of internal temperature, carrier densities, carrier escape and leakage rates, and spontaneous recombination rates on current for different effective capture times.