Browsing by Author "Truong C"

Now showing 1 - 4 of 4
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    Aerospace competition, investor attention, and stock return comovement
    (Elsevier, 2023-09-14) Do X; Nguyen NH; Nguyen QMP; Truong C
    Fierce aerospace competition among global superpowers has resulted in strong public attention on satellite launch events in the U.S. Given limited attentional resources, U.S. investors pay more attention to market-level shocks than to firm-specific shocks, making stock returns comove more with the market on satellite launch days than on other days. We find that the effect is significantly stronger for military-related satellite launches, launches before the dissolution of the former Soviet Union, and international satellite launches by other competitors, highlighting a greater concern for national security. A trading strategy that exploits the potential satellite-induced mispricing yields an annualized abnormal risk-adjusted return of up to 17% within the three-day window around launch date. Our results are robust to a battery of robustness analyses that consider the different characteristics of satellite launches, the exclusion of aerospace firms, and stock return comovement with industries.
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    Lottery Demand and Stock Returns Preceding Earnings Announcements
    (John Wiley and Sons Ltd, 2025-08-19) Nguyen H; Truong C
    We document a significant positive relation between extreme positive stock returns around past earnings announcements and stock returns in the 10-day window before current earnings announcements. The average of risk-adjusted return differences between stocks with the highest earnings announcement maximum returns and stocks with the lowest earnings announcement maximum returns is 85 basis points in the 10 days leading up to earnings announcements. This is consistent with the argument that investors have a preference for stocks with large payoffs during earnings announcements.
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    When Hollywood movies steal the show, stock returns dance more with the market!
    (Elsevier Inc, 2024-10) Do HX; Nguyen NH; Nguyen QMP; Nguyen TVH; Truong C
    Hollywood film releases attract U.S. investors' attention away from the financial markets. This is reflected in lower trading activity and abnormal Google search volume for firm names between film and non-film days. The resultant investor inattention leads to a significantly higher stock return comovement with the market on film release days. Interestingly, films with A-list star actors and blockbuster movies exhibit a more pronounced impact than their counterparts. Finally, we show that being aware of this Hollywood film-induced mispricing can yield an annualized abnormal risk-adjusted return of up to 13.5% within five days around the release events.
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    Work from Home Suitability and Credit Risk Assessment
    (Taylor and Francis Group, 2023-07-07) Nguyen H; Pham MH; Truong C
    Employing firm-level work from home (WFH) suitability derived from the U.S. universe job postings, we investigate whether rating agencies and debt holders incorporate WFH suitability in their risk assessments. We document that firms with higher WFH suitability have higher credit ratings and lower costs of debt. Our results are robust to different fixed effect estimations, sampling methods, and controls. We identify two ways that WFH suitability translates into higher credit ratings: high WFH suitability is associated with lower future cash flow volatility and lower default risk. Overall, our study suggests that WFH suitability is an important determinant of credit risk assessments and that firms should see flexible work arrangements as an effective strategy in their crisis management planning.