Working Paper: NBER ID: w22301
Authors: James R. Hines Jr.; Niklas Potrafke; Marina Riem; Christoph Schinke
Abstract: This paper examines the determinants of inter vivos (lifetime) transfers of ownership in German family firms between 2000 and 2013. Survey evidence indicates that owners of larger firms, and firms with strong current business conditions, transfer ownership at higher rates than others. When a firm’s self-described business condition improves from “normal” to “good” the likelihood of an inter vivos transfer increases by 46 percent. Inter vivos transfer rates also rose following a 2009 reform that reduced transfer taxes. These patterns suggest that transfer taxes significantly influence rates and timing of inter vivos ownership transfers.
Keywords: inter vivos transfers; family firms; ownership succession; transfer taxes
JEL Codes: D22; D31; H24
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| business condition (E66) | inter vivos transfer (D64) |
| 2009 tax reform (H29) | inter vivos transfer (D64) |