» Posted by Martin Weil on March 30, 2007

Significantly negative stock performance follows the acquisition of very large homes by company CEOs.

So writes researcher David Yermack of NY University in this article, an extract from a new research paper on the relationship between stock performance and the homes of CEOs. It used to be said that when a company hired a famous architect to design and build a flagship headquarters, the end was near. Yermack's study seems to suggest the same stock price predictive value holds for CEO mansions.

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