Tailspotting: Identifying and profiting from CEO vacation trips

David Yermack

No 17940, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: This paper shows close connections between CEOs' absences from headquarters and corporate news disclosures. I identify CEO absences by merging corporate jet flight histories with records of CEOs' property ownership near leisure destinations. I find that CEOs go to their vacation homes just after companies report favorable news, and CEOs return to headquarters right before subsequent news is released. When CEOs are away, companies announce less news than usual, mandatory disclosures are more likely to occur late, and stock prices exhibit sharply lower volatility. Volatility increases when CEOs return to work. CEOs spend fewer days out of the office when their ownership is high and when the weather is bad at their vacation homes.

JEL-codes: G14 G34 (search for similar items in EconPapers)
Date: 2012-03
Note: CF LE
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Published as Journal of Financial Economics Volume 113, Issue 2, August 2014, Pages 252–269 Cover image Tailspotting: Identifying and profiting from CEO vacation trips ☆ David Yermacka, b,

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