““CEOs go to their vacation homes just after companies report favorable news, and CEOs return to headquarters right before subsequent news is released. More good news is released when CEOs are back at work, and CEOs appear not to leave headquarters at all if a firm has adverse news to disclose. When CEOs are away from the office, stock prices behave quietly with sharply lower volatility. Volatility increases immediately when CEOs return to work.” —David Yermack, a New York University finance professor, whose recently released study shows a correlation between when CEOs take their private jets on vacation and movements in their companies’ stock price ”
Business Aviation Accidents Increase Compared with Last Year
Business jets were involved in 18 nonfatal and three fatal accidents during the first nine months of 2006, compared with 16 nonfatal and one fatal accident in the same period last year. Despite the increase in fatal accidents, the number of deaths remained the same, at eight persons, according to safety analyst Robert E. Breiling of Boca Raton, Fla. Meanwhile, accidents involving business turboprops increased from 10 in the first three quarters of last year to 13 this year, but fatalities decreased from 32 to 24 for the same time periods.