An article entitled “Insider Giving” by Süreyya Burcu Avcı, part-time faculty member at Sabancı Business School, has been published in the Duke Law Journal of the Duke School of Law in the US.
Written by Süreyya Burcu Avcı, Prof. Dr. Cindy Schipani and Prof. Dr. Nejat Seyhun of University of Michigan Ross School of Business, Prof. Dr. Andrew Verstein of UCLA School of Law, the article covers big corporate shareholders who donate their stocks to charities and obtain sizeable profits thanks to tax deductions. The study indicates that stock prices increased by 6 per cent in one year before the donation date, and decreased by four per cent one year later. Showing that donations are made when the stock price is at the top, the study highlights that this situation is either an abnormal coincidence or attributable to “insider giving”.
The article was shown by the US Securities and Exchange Commission (SEC) as a reference for its proposed law amendment.
You can reach the article by clicking here.