The Effect of Succession Taxes on Family Firm Investment: Evidence from a Natural Experiment

• 成果类型: Article
• 署名作者: Tsoutsoura, Margarita
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.1111/jofi.12224
• 发表日期: 2015
• 页码: 649-688
• 关键词: ownership; management; constraints; BOUNDARIES

摘要

This paper provides causal evidence on the impact of succession taxes on firm investment decisions and transfer of control. Using a 2002 policy change in Greece that substantially reduced the tax on intrafamily transfers of businesses, I show that succession taxes lead to a more than 40% decline in investment around family successions, slow sales growth, and a depletion of cash reserves. Furthermore, succession taxes strongly affect the decision to sell or retain the firm within the family. I conclude by discussing implications of my findings for firms in the United States and Europe.