““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 Aircraft Deliveries Soar to New Heights
The General Aviation Manufacturers Association (GAMA) has announced 2007 shipment figures for the general aviation industry, and the news is good. The industry showed record billings of $21.9 billion, eclipsing the previous year's figure by 16 percent. Worldwide general aviation shipments totaled 4,272 aircraft, the most in more than a quarter century and a 5-percent jump over the 4,053 airplanes delivered in 2006. Business jet shipments reached an all-time high of 1,138 aircraft, up 28 percent from last year's 886 airplanes. Shipments of turboprops increased 11 percent to 459 aircraft, up from 412 in 2006, while piston airplane deliveries fell 3 percent, from 2,755 to 2,675. GAMA chairman and Cirrus Design chairman and CEO Alan Klapmeier said that a strong worldwide market, especially outside North America, was a driving factor for general aviation industry growth last year.