““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 ”
Jet Deliveries Soaring, Says Manufacturers' Association
First-quarter figures from the General Aviation Manufacturers Association show no signs that the business aviation industry is yet feeling the impact of a sagging U.S. economy. The 297 jets delivered in the first quarter of 2008 represent a 41-percent increase over the 211 deliveries for the same period in 2007, according to the Washington, D.C.-based association. According to GAMA president Pete Bunce, manufacturers continue to see a trend toward deliveries outside the U.S. and some expect international sales soon to exceed 70 percent of their business. At press time, GAMA had not yet compiled second-quarter figures, but both Textron (Cessna and Bell) and General Dynamics (Gulfstream) reported strong numbers.