Is Your Firm Underperforming? Your CEO Might Be Golfing Too Much

Research shows the costs of executive shirking.

by

and

Andy Puckett

by

and

Andy Puckett

November 30, 2016

A year before Bear Stearns failed during the financial crisis, there were signs that the Wall Street firm was in trouble. During July 2007, two of Bear Stearns’ large hedge funds were failing. What was CEO James Cayne doing at the time? That month, he spent ten “working” days either playing golf or the card game bridge.

Lee Biggerstaff is an assistant professor in the Farmer School of Business at Miami University. His primary research interests are corporate finance, the agency problem faced by shareholders, and insider trading.
David C. Cicero is an associate professor of finance at Auburn University. His research focuses on agency issues in publicly-held corporations, corporate governance, and executive compensation. Previously, he practiced corporate law and as a financial economist with the U.S. Securities and Exchange Commission.
Andy Puckett is an associate professor in the Haslam College of Business at the University of Tennessee. His primary research interests are in the areas of institutional investing, sell-side analysts, executive ethics, and market microstructure.

Is Your Firm Underperforming? Your CEO Might Be Golfing Too Much

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