# Professor David Yermack's research on the relationship between charitable giving and stock prices is cited in connection with the formation of the Chan Zuckerberg Initiative

1 Faculty News December 2, 2015 ![Inc. logo](/sites/default/files/styles/246w/public/assets/images/con_032187.jpg?itok=TSGPgNt6)>

Excerpt from [Inc.](http://www.inc.com/jeremy-quittner/mark-zuckerberg-charitable-foundation-will-benefit-the-zuckerbergs.html) -- "At least one academic report suggests chief executives tend to make significant stock gifts following a run up in share prices. And given the current frothy environment around tech stocks, where Facebook's own stock is at a near historic high of $107 a share as of Wednesday afternoon, the timing makes sense. 'The gift date itself on average represents a turning point in the stock's trajectory, with company prices moving lower in the months after a gift is made,' [David Yermack](http://www.stern.nyu.edu/faculty/bio/david-yermack), a professor of finance at the NYU Stern School of Business, wrote in a 2008 article in the Journal of Financial Economics."

[Read more](http://www.inc.com/jeremy-quittner/mark-zuckerberg-charitable-foundation-will-benefit-the-zuckerbergs.html)

Additional coverage appeared on [The Daily Beast](http://www.thedailybeast.com/articles/2015/12/01/mark-zuckerberg-s-charity-windfall.html) and the [Financial Post](http://business.financialpost.com/investing/mark-zuckerberg-and-the-world-benefit-from-his-good-deed-but-do-facebook-shareholders).