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The 'Shadow of Succession' in Family Firms

Diwisch, Sandra Denise and Voithofer, Peter and Weiss, Christoph (2005) The 'Shadow of Succession' in Family Firms. Discussion Papers SFB International Tax Coordination, 10. SFB International Tax Coordination, WU Vienna University of Economics and Business, Vienna.

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The paper analyses the relationship between succession and firm performance. Using a unique panel data set on a sample of roughly 4,000 Austrian family firms we examine empirically the impact of past succession as well as future succession plans on employment growth and investment behaviour. Analysing succession plans, we do not find a 'shadow of succession' effect. No significant difference in employment growth and investment behaviour is found between firms that plan to transfer the firm in the next ten years and those who do not. In contrast, past succession exerts a significant and positive employment growth effect which becomes stronger over time. The impact of past succession on investments is also positive but not significantly different from zero. Thus, our findings provide support for the existence of a positive employment shadow after a transfer, whereas the shadow of succession hypothesis has to be rejected prior to transition. (author's abstract)

Item Type: Paper
Keywords: Austria / family firms / succession / employment growth / investment behaviour / econometric analysis
Classification Codes: RVK QP 440 ; JEL C23, D92, J23, L25
Divisions: Departments > Finance, Accounting and Statistics > Accounting and Auditing > Betriebswirtschaftliche Steuerlehre
Departments > Volkswirtschaft
Departments > Öffentliches Recht und Steuerrecht > Österr. und Internat. Steuerrecht
Depositing User: Repository Administrator
Date Deposited: 09 Feb 2006 15:16
Last Modified: 20 May 2015 23:25
URI: http://epub.wu.ac.at/id/eprint/468


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