Thursday, April 05, 2007

CEO House Size ~Stock Return

A study by Liu and Yermack proves that the bigger his house, the worse the CEO.

In a paper titled "Where are the Shareholders' Mansions? CEOs' Home Purchases, Stock Sales, and Subsequent Company Performance" (what a mouthful name), the two professors used information from the web, especially Zillow to find out the house value and house purchasing behavior of the fortune 500 CEOs and find a negative relationship!

That's what I call "interesting" research!

No comments: