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Inter vivos transfers of ownership in family firms

Author

Listed:
  • James R Hines Jr

    (University of Michigan and NBER)

  • Niklas Potrafke

    (Ifo Institute)

  • Marina Riem

    (Ifo Institute)

  • Christoph Schinke

    (Ifo Institute)

Abstract
This paper examines the determinants of inter vivos 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 chance of an inter vivos transfer increases by 46 percent. Inter vivos transfer rates also rose following a 2009 transfer tax reduction. These patterns suggest that transfer taxes significantly influence rates and timing of inter vivos ownership transfers.

Suggested Citation

  • James R Hines Jr & Niklas Potrafke & Marina Riem & Christoph Schinke, 2015. "Inter vivos transfers of ownership in family firms," Working Papers 1523, Oxford University Centre for Business Taxation.
    • Handle: RePEc:btx:wpaper:1523
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    2. Lucia Granelli & Martin Habet & Guergana Stanoeva & Gaetano D’Adamo & Robert Gampfer, 2020. "Puzzles in Non-Financial Corporate Sector Savings across the G20," European Economy - Economic Briefs 063, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
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    More about this item

    Keywords

    inter vivos transfers; transfer taxes; family firms;
    All these keywords.

    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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