CEO Physical Activity Level and its Effect on Long Term Stock Performance

Abstract

This study investigates whether a relationship exists between CEO physical activity levels and long-term stock performance of companies, inspired by the popular Deadlift ETF. Using a sample of S&P 100 companies that maintained the same CEO from January 2020 to January 2025, a multivariable regression analysis was carried out where the dependent variable was five-year CAGR and explanatory variables included CEO physical activity (a binary dummy variable), market capitalization, and price-to-book ratio as per the Fama-French model. CEO fitness levels were assessed via publicly available social media and interview data. Statistical tests for multicollinearity (VIF) and autocorrelation (Durbin-Watson) confirmed robustness of the model assumptions. However, regression results revealed that all predictor variables, including CEO physical activity, were statistically insignificant (p-values > 0.4), with an adjusted R-squared of -0.01239, suggesting minimal explanatory power. These findings led to a failure to reject the null hypothesis, indicating no meaningful correlation between CEO physical activity and stock performance. This study concludes that while fitness may contribute to personal executive well-being, it does not translate into superior stock returns.