““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 ”
Cessna Introduces CJ4, Fastest in the Family
At the National Business Aviation Association convention in October, Cessna introduced the latest member of its Citation family, the CJ4. The Wichita, Kan. manufacturer claims it is a clean-sheet design rather than a derivative of past Citation CJs. But Cessna is borrowing heavily from lessons learned from the entire Citation line for the design, with an Encore+ cockpit and cabin, the Mustang's wide cabin door, Sovereign-style wing performance and external baggage capacity similar to that of the CJ3. Twin Williams FJ44-4A turbofans will drive the $7.995 million, 11-seat jet at 435 knots-20 knots faster than the CJ3's maximum cruise speed. Projected specs also call for a 1,825-nautical-mile NBAA-IFR range. Cessna expects FAA certification in late 2009, with the first aircraft to enter service in early 2010. Cessna also plans to upgrade its Citation XL and Citation XLS, primarily with a cabin makeover. The XLS+, initially priced at $11.595 million for a limited number of 2008 deliveries, is expected to get FAA approval in the first quarter of 2008.