EconPapers    
Economics at your fingertips  
 

Inheritance Law and Investment in Family Firms

Andrew Ellul, Marco Pagano and Fausto Panunzi
Additional contact information
Fausto Panunzi: Bocconi University, FEEM, CEPR and ECGI

No 915, EIEF Working Papers Series from Einaudi Institute for Economics and Finance (EIEF)

Abstract: Entrepreneurs may be legally bound to bequeath a minimal stake to non-controlling heirs. The size of this stake can reduce investment in family firms, by reducing the future income they can pledge to external financiers. Using a purpose-built indicator of the permissiveness of inheritance law and data for 10,004 firms from 38 countries in 1990-2006, we find that stricter inheritance law is associated with lower investment in family firms, but does not affect investment in non-family firms. Moreover, as the model predicts, inheritance law affects investment only in family firms that experience a succession.

Pages: 64 pages
Date: 2009, Revised 2009-11
New Economics Papers: this item is included in nep-ent
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://www.eief.it/files/2012/09/wp-15-inheritance ... -in-family-firms.pdf (application/pdf)

Related works:
Journal Article: Inheritance Law and Investment in Family Firms (2010) Downloads
Working Paper: Inheritance Law and Investment in Family Firms (2009) Downloads
Working Paper: Inheritance Law and Investment in Family Firms (2009) Downloads
Working Paper: Inheritance Law and Investment in Family Firms (2009) Downloads
Working Paper: Inheritance Law and Investment in Family Firms (2008) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eie:wpaper:0915

Access Statistics for this paper

More papers in EIEF Working Papers Series from Einaudi Institute for Economics and Finance (EIEF) Contact information at EDIRC.
Bibliographic data for series maintained by Facundo Piguillem ().

 
Page updated 2024-06-18
Handle: RePEc:eie:wpaper:0915