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Inter vivos transfers of ownership in family firms

Author

Listed:
  • James R. Hines

    () (University of Michigan)

  • Niklas Potrafke

    () (Ifo Institute)

  • Marina Riem

    () (Ifo Institute)

  • Christoph Schinke

    () (Ifo Institute)

Abstract

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 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 relative 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.

Suggested Citation

  • James R. Hines & Niklas Potrafke & Marina Riem & Christoph Schinke, 2019. "Inter vivos transfers of ownership in family firms," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 26(2), pages 225-256, April.
  • Handle: RePEc:kap:itaxpf:v:26:y:2019:i:2:d:10.1007_s10797-018-9508-1
    DOI: 10.1007/s10797-018-9508-1
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    Cited by:

    1. Wang, Youzhi & Delgado, Michael S. & Marshall, Maria I. & Dobbins, Craig L., 2017. "Generational Shadow in Farming Business: How Does It Affect the Succession Process?," 2017 Annual Meeting, February 4-7, 2017, Mobile, Alabama 252967, Southern Agricultural Economics Association.
    2. Florian Dorn & Björn Kauder & Manuela Krause & Niklas Potrafke, 2017. "Die Erbschaftsteuer in Deutschland – Reformbedarf und Reformkompromiss," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 70(01), pages 33-40, January.

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    Keywords

    Inter vivos transfers; Transfer taxes; Family firms;

    JEL classification:

    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis

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