Stocks Swing on CEO House Size

Don't buy stock in a company whose CEO lives in a huge house, a new study says.  CEOs who move into regular-sized digs—5,600 square feet for the typical company head—see their company's stock jump an average 6% the following year. Those who go palatial—10,000 square feet or more—watch stocks dip by an average of 1.7%.

Authors Crocker Liu and David Yermack speculate that a big-ticket purchase may be a signal of an exec who is overly secure in her position. Or it may point to something more insidious, like a pretext for dumping shares. Bottom line for investors: When your neighborhood CEO decides to move on up, it's time to start shorting.
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