Do XNguyen NHNguyen QMPTruong C2023-09-252023-09-292023-09-252023-09-292023-09-14Do 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).0167-2681http://hdl.handle.net/10179/20191Fierce 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.40-59(c) 2023 The Author/sCC BY 4.0https://creativecommons.org/licenses/by/4.0/Journal article10.1016/j.jebo.2023.09.0052023-09-21Massey_Darkjournal-article