Deductio Ad Absurdum: CEOs Donating Their Own Stock to Their Own Family Foundations

42 Pages Posted: 9 Mar 2009

See all articles by David Yermack

David Yermack

New York University (NYU) - Stern School of Business

Multiple version iconThere are 2 versions of this paper

Date Written: September 2008

Abstract

I study large charitable stock gifts by Chairmen and CEOs of public companies. These gifts, which are not subject to insider trading law, often occur just before sharp declines in their companies share prices. This timing is more pronounced when executives donate their own shares to their own family foundations. Evidence related to reporting delays and seasonal patterns suggests that some CEOs backdate stock gifts to increase personal income tax benefits. CEOs family foundations hold donated stock for long periods rather than diversifying, permitting CEOs to continue voting the shares.

Suggested Citation

Yermack, David, Deductio Ad Absurdum: CEOs Donating Their Own Stock to Their Own Family Foundations (September 2008). NYU Working Paper No. FIN-08-014. Available at SSRN: https://ssrn.com/abstract=1354502

David Yermack (Contact Author)

New York University (NYU) - Stern School of Business ( email )

44 West 4th Street
Suite 9-160
New York, NY 10012-1126
United States
212-998-0357 (Phone)
212-995-4220 (Fax)

HOME PAGE: http://www.stern.nyu.edu/~dyermack

Register to save articles to
your library

Register

Paper statistics

Downloads
87
Abstract Views
1,927
rank
11,417
PlumX Metrics