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Badrinath, S.G., Kale, J.R. and Noe, T.H. (1995) Of Shepherds, Sheep, and the Cross-Autocorrelations in Equity Returns. Review of Financial Studies, 8, 401-430.
https://doi.org/10.1093/rfs/8.2.401

has been cited by the following article:

• TITLE: Corporate Quasi-Strategic Alliance via Outsourcing Transactions

  AUTHORS: Ning Gao

  KEYWORDS: Outsourcing, Cross-Autocorrelations, Stock Returns, Lead-Lag, Accounting Performance

  JOURNAL NAME: Theoretical Economics Letters, Vol.8 No.3, February 13, 2018

  ABSTRACT: This paper relates outsourcing parties together and tests whether the outsourcing contracts have any impact on the relationship of the two parties’ performance. Both the ex-anti and the ex-post changes in stock and accounting related performance of the contract signatories are examined. We find that after the contract effective year, there is statistically significant cross-autocorrelation between client and vendor firms’ stock returns. What’s more, on average daily returns of the client stocks lead those of the vendor stocks. We also find that accounting performance changes between the two parties show significantly higher level of cross-correlation than pre-event. Our finding of an increase in cross-autocorrelation between the ex-post performance of client and vendor firms indicates that corporate outsourcing transactions result in a quasi-strategic alliance.