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Alex Edmans highlights research showing that CEOs who own corporate jets underperform their peers by 4 percent per year. This underperformance translates to an average loss of $300 million, which far exceeds the cost of the jet itself.
Edmans explains that the reasoning is tied to what the jet ownership signals about CEO character, and suggests the same logic can be applied to politicians.
Edmans has previously commented on other market trends. He noted the FTSE 100 opened lower despite UK growth reaching a 13-month high, as investor sentiment was affected by England's loss. The observations provide additional context to Edmans's recent remarks on corporate leadership behavior.