Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments March 2, 2023 erstellt
Description:
The fierce aerospace competition between superpowers results in a strong public attention to satellite launch events in the U.S. Under limited attentional resources, U.S. investors allocate their attention more to market-level shocks than firm-specific shocks, making stock returns to comove more with the market on satellite launch days compared to other days. Particularly, we find that the effect is significantly stronger for the military related satellite launches, for launches before the Soviet dissolution, and for international satellite launches by other competitors, highlighting a greater concern placed for national security. As a practical implication, a trading strategy exploiting the potential satellite-induced mispricing could yield an annualized abnormal risk-adjusted return of up to 17% within the three-day window around the launch date. Our results are robust to a battery of robustness analyses considering different characteristics of satellite launches, an exclusion of firms in the aerospace industry, and stock return comovement with industries