““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 ”
U.S. TRIPLE CROWN
Horseracing fans all over the world are gearing up for the three events on which so much is riding. Not since 1978 has there been a winner of the U.S. Triple Crown of Thoroughbred Racing, which includes the Kentucky Derby at Churchill Downs in Louisville, Kentucky on May 4; the Preakness Stakes at Baltimore’s Pimlico Race Course on May 18; and the Belmont Stakes at Belmont Park in Elmont, New York on June 8. A horse named I’ll Have Another won the first two competitions last year but was forced to drop out of the Belmont Stakes with a swollen tendon.