Article

Small Business Economics

, Volume 32, Issue 1, pp 45-56

Succession and firm growth: results from a non-parametric matching approach

  • Denise Sandra DiwischAffiliated withDepartment of Economics, Vienna University of Economics and Business Administration Email author 
  • , Peter VoithoferAffiliated withAustrian Institute for SME Research
  • , Christoph R. WeissAffiliated withDepartment of Economics, Vienna University of Economics and Business Administration

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Abstract

The article analyses the relationship between succession and firm performance. Applying a non-parametric matching approach on a panel of roughly 4,000 Austrian family firms we evaluate the impact of actual (past) succession as well as planned (future) successions on employment growth. Analysing succession plans, we do not find a significant difference in employment growth between firms that plan to transfer the firm in the next 10 years and those who do not. In contrast, past succession exerts a significant and positive employment growth effect, which becomes stronger over time.

Keywords

Succession Family firms Employment growth Matching Austria

JEL Classification

C14 L25 L26