Venue/地点：Room 501, Jiageng Building 2/嘉庚二号楼501教室
Topic/题目： The Estate Tax andthe Payout Policy in Family Firms
Speaker/报告人： Dr. So-Yeon Lim
Abstract/摘要： We examine how familyfirms’ incentive to minimize estate taxes affects payout policies. We hypothesize that family firmsare less likely to pay out than non-family firms in response to higher estate tax ratesbecause profits paid out to shareholdersbefore death aresubject to the estate taxes on top ofthe dividend or capital gain taxes, reducing total inheritanceto heirs. To document the causal evidence, we exploitthe 2001 tax reform in the U.S. that reduced federal estate tax from 55% to zero. We find that after the announcement of the abolition of the estate tax in 2001, family firms increased dividend payouts more than non-family firms did. Consistent with family owners’ incentives to reduce the estate tax burdens without losing control, the effect of the tax reform on payout policiesis more pronounced for family firmswhere founders serve as senior executives and family firms that do not have family trust for estate planning. Using sudden diagnoses of executives’ fatal diseases as another shock, we also show that firms managed by ill executives reduce payout after the diagnosisbut increase dividends after death.
About the Speaker/报告人简介： Dr. So-Yeon Lim has been serving as an Assistant Professor in Finance at the Institute for Financial and Accounting Studies in XMU since 2018. Dr. Lim obtained her doctoral degree in Finance from Nanyant Techological University in 2018 and became an Assistant Professor of XMU in 2018. Dr. Lim’s teaching and research interests mainly focus on Corporate Finance. Her academic papers appear in such conferences as Asian Finance Association Annual Conference, Australasian Finance and Banking Conference, American Finance Association Annual Conference, Financial Management Association Annual Conference, European Financial Management Association Annual Conference, Conference on Asia-Pacific Financial Market and Strategic Management Society Annual Conference. Dr. Lim has undertaken numerous other projects.
Online Conference ID/ 腾讯会议号：455 1786 6207