The 'Shadow of Succession'. A Non-Parametric Matching Approach.

Diwisch, Sandra Denise and Voithofer, Peter and Weiss, Christoph (2006) The 'Shadow of Succession'. A Non-Parametric Matching Approach. Discussion Papers SFB International Tax Coordination, 13. 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. Applying a non-parametric matching approach on a panel of roughly 4,000 Austrian family firms we evaluate the impact of past succession as well as future succession plans on employment growth. Analysing succession plans, we do not find a 'shadow of succession' effect. No significant difference in employment growth 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. 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.

Item Type: Paper
Keywords: succession / family firms / employment growth / matching / Austria
Classification Codes: JEL C14, L25 ; RVK QR 380
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 14:31
Last Modified: 22 Oct 2019 00:41


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