Aerospace competition, investor attention, and stock return comovement

Simple item page
dc.citation.volume215
dc.contributor.authorDo X
dc.contributor.authorNguyen NH
dc.contributor.authorNguyen QMP
dc.contributor.authorTruong C
dc.date.accessioned2023-09-25T02:20:19Z
dc.date.accessioned2023-09-29T01:39:58Z
dc.date.available2023-09-25T02:20:19Z
dc.date.available2023-09-29T01:39:58Z
dc.date.issued2023-09-14
dc.date.updated2023-09-21T23:59:14Z
dc.description.abstractFierce 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.
dc.description.confidentialfalse
dc.format.extent40-59
dc.identifier.citationDo X, Nguyen NH, Nguyen QMP, Truong C. (2023). Aerospace competition, investor attention, and stock return comovement. Journal of Economic Behavior and Organization. 215. (pp. 40-59).
dc.identifier.doi10.1016/j.jebo.2023.09.005
dc.identifier.elements-typejournal-article
dc.identifier.harvestedMassey_Dark
dc.identifier.issn0167-2681
dc.identifier.urihttp://hdl.handle.net/10179/20191
dc.publisherElsevier
dc.relation.isPartOfJournal of Economic Behavior and Organization
dc.rights(c) 2023 The Author/sen_US
dc.rightsCC BY 4.0en_US
dc.rights.urihttps://creativecommons.org/licenses/by/4.0/en_US
dc.titleAerospace competition, investor attention, and stock return comovement
dc.typeJournal article
pubs.elements-id480518
pubs.organisational-groupMassey Business School
Files
Original bundle
Now showing 1 - 1 of 1
Thumbnail Image
Name:
Do et al. (JEBO, 2023) Aerospace competition & investor attention.pdf
Size:
1.34 MB
Format:
Adobe Portable Document Format
Description:
Download
Collections
Journal Articles