““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 ”
China's Minsheng Seeks 10+ Business Jets
China's Minsheng Financial Leasing is in talks to acquire 10 to 15 business jets as part of a plan to order 100 by 2014. The company has already ordered 17 aircraft since April 2008, according to the firm's aviation and legal consultant, David Tang.
The lessor is an affiliate of China's Minsheng Bank, which specializes in financial leases for Chinese customers. Thus far Minsheng's customers have been exhibiting a strong preference for large, long-range jets such as the Gulfstream G550. The lessor expects increased interest in Chinese domestic flying to generate a rise in bookings for medium-range aircraft in 2011.