““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 ”
Gulfstream Further Expands Its R&D Center
Gulfstream Aerospace has acquired a 253,000-sq-ft building in Savannah, Ga., to house its growing research and development program. This furthers an expansion plan that Gulfstream announced on November 15, which includes building new facilities at the northwest quadrant of the Savannah/Hilton Head International Airport, renovating several existing facilities on the main campus and expanding office and lab facilities at the Gulfstream research and development center. "Gulfstream recognizes the strategic importance of research and development," said Pres Henne, senior vice president of programs, engineering and test. "This expansion will enable us to explore new technologies that further enhance aircraft safety, reliability, dependability and efficiency for our customers." Gulfstream bought its new R&D building late last month and has started the first of two planned renovations, which should be completed next month. The second renovation is slated to start in April and is scheduled for completion next year. Gulfstream's recent R&D expansion has fueled industry speculation that more new models beyond the in-development G250 and G650 are forthcoming.