We find that leverage-initiating stocks experience an increase in return comovement with existing leveraged stocks and a decrease in return comovement with existing zero-leverage stocks in the year after the leverage initiation event. In contrast, stocks that fully deleverage comove more with...

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...