Golf and the Public-Company CEO

A little while ago Golf Digest published its list of the best golfers among CEOs of publicly-traded companies in the U.S. Being the data junkie that I am I did the only reasonable thing: I checked to see if there is any relationship between CEO golf handicap and company stock performance.

My first cut analysis was to check the one-year stock performance of the top 25 golfing CEOs, and then compare that to the bottom 25. The result: The average one-year performance of the top 25 golfers’ companies was 13%; the average for the bottom 25 was 28%. Apparently all this time spent being a better golfer does come from somewhere after all.

Related posts:

  1. The Hot Hand Phenomenon in Golf
  2. Golf and the Swinging Executive
  3. Golf Handicaps of Venture Capitalists
  4. Zen and the Public Company
  5. Being a Company Founder is Apparently Overrated

Comments

  1. Jas Kermott says:

    Your next step is to consider the same population, but over the entire tenure of each CEO. I leave it up to you whethe to do so just for the company that individual heads up now, or whether to incorporate any previous tours as CEO of unrelated companies. (Obviously, any CEO who got his/her current job as a “promotion” from CEO of either a subsidiary company or an acquired company would have that time added in.)
    BTW – I haven’t looked at the list, so I don’t even know the relevancy of the project; but, it cannot be any more irrelevant than the completed 1-year study.
    Jas Kermott

  2. Aswath says:

    I vaguely remember reading in NYT, circa mid 90′s a similar analysis; but I don’t remember the conclusion though.

  3. John K says:

    Paul, you are promoting Voodoo statistics. Even if it sounds cute, it’s deceptive and meaningless (statistically, that is).
    Next, you’re gonna tell us that when the AFC wins on Monday nite, the stock market goes up the next day…

  4. Jeff B. says:

    At a quick glance, the bottom 25 companies appear heavily weighted in financials and energy. Golf or no golf it always helps to be running a company in a sector thats hot!

  5. Travis R says:

    You should post your numbers, that would be interesting.

  6. Rem says:

    While the statistics may or may not be meaningless, the data set seemed like good fun. I went through the 1998,2000.2002,2004, and 2006 golf data sets and merged them into one spreadsheet (you can get it from my blog or directly from google spreadsheets at:
    http://spreadsheets.google.com/ccc?key=pSlFCc_t5EJyJCynE-wd9aQ
    A lot of the same CEOs keep coming up (so far it looks like the CEOS get worse during their tenure, but that could just be age catching up with them). The most interesting aspect however is that companies come up multiple times and often with different CEOs. Should be fun to work out whether the incoming CEO has a better or worse game than the old one.
    Rem

  7. Rem says:

    While the statistics may or may not be meaningless, the data set seemed like good fun. I went through the 1998,2000.2002,2004, and 2006 golf data sets and merged them into one spreadsheet (you can get it from my blog or directly from google spreadsheets at:
    http://spreadsheets.google.com/ccc?key=pSlFCc_t5EJyJCynE-wd9aQ
    A lot of the same CEOs keep coming up (so far it looks like the CEOS get worse during their tenure, but that could just be age catching up with them). The most interesting aspect however is that companies come up multiple times and often with different CEOs. Should be fun to work out whether the incoming CEO has a better or worse game than the old one.
    Rem