Handicapping Profits
Submitted by unsettling economics
In The Confiscation of American Prosperity, I looked at the correlation of poor corporate profitability with CEO’s low golf handicaps, as well as the use of corporate jets, and membership in far off country clubs.
Later, I learned of the relationship between CEO’s oversize mansions and negative corporate performance.
Liu, Crocker and David Yermack. 2007. “Where Are The Shareholders’ Mansions? Ceos’ Home Purchases, Stock Sales, and Subsequent Company Performance.” http://ssrn.com/abstract=970413
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