Abstract

http://ssrn.com/abstract=529822
 
 

References (24)



 
 

Citations (76)



 


 



Flights of Fancy: Corporate Jets, CEO Perquisites, and Inferior Shareholder Returns


David Yermack


New York University (NYU) - Stern School of Business

March 2005

AFA 2005 Philadelphia Meetings

Abstract:     
This paper studies perquisites of major company CEOs, focusing on personal use of company planes. For firms that have disclosed this managerial benefit, average shareholder returns under-perform market benchmarks by more than 4 percent annually, a severe gap far exceeding the costs of resources consumed. Around the date of the initial disclosure, firms' stock prices drop by an average of 1.1 percent. Regression analysis finds no significant associations between CEOs' perquisites and their compensation or percentage ownership, but variables related to personal CEO characteristics, especially long-distance golf club memberships, have significant explanatory power for personal aircraft use.

Number of Pages in PDF File: 56

Keywords: Executive compensation, corporate jets, perquisites

JEL Classification: G30, J33

working papers series


Download This Paper

Date posted: April 14, 2004  

Suggested Citation

Yermack, David, Flights of Fancy: Corporate Jets, CEO Perquisites, and Inferior Shareholder Returns (March 2005). AFA 2005 Philadelphia Meetings. Available at SSRN: http://ssrn.com/abstract=529822 or http://dx.doi.org/10.2139/ssrn.529822

Contact Information

David Yermack (Contact Author)
New York University (NYU) - Stern School of Business ( email )
44 West 4th Street
Suite 9-160
New York, NY 10012-1126
United States
212-998-0357 (Phone)
212-995-4220 (Fax)
HOME PAGE: http://www.stern.nyu.edu/~dyermack
Feedback to SSRN


Paper statistics
Abstract Views: 18,306
Downloads: 2,627
Download Rank: 2,023
References:  24
Citations:  76

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo1 in 0.500 seconds