The CEO Mega-Mansion Factor: “Finance professors David Yermack of New York University and Crocker Liu of Arizona State University looked at the relationship between stock performance and the size of a CEO’s home. The bigger or pricier the house, they found, the greater the risk of lackluster shares.”
While I appreciate the sentiment, could it be just a size bias? We know that smaller companies tend to outperform larger companies and we could reasonably guess that smaller company CEOs make less money and would tend to live in smaller houses. But they only looked at the S&P - so is there a small-cap and large-cap bias within the S&P? Does the S&P exhibit a typical power law? Dunno.
