作者: Yong Kyu Gam (西南财经大学金融研究院), Min Jung Kangb (School of Management, University of Michigan), Junho Parkc (Lee Kong Chian School of Business, Singapore Management University), Hojong Shin (College of Business Administration, California State University)
摘要:
We argue that changes in the inheritance system affect incentives leading to sibling rivalry among descendants and therefore have a material impact on family firm performance. Using South Korea's 1991 inheritance law reform that stipulates the equal distribution of a deceased person's property to descendants, we find that the performance and operating growth rate in family firms show significant enhancement compared with those of nonfamily firms. Moreover, the positive effects are greater for family firms that undergo a business succession with multiple sons and married daughters. Overall, our results suggest that changing to equal bequests of inheritance has a positive effect on firm value by providing better-aligned incentives to heirs in family firms. We conclude our paper by discussing the implications of our findings for current generations in family firms.
