Lakicevic, Milan and Vulanovic, Milos (2012): A Story on Spacs.
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We study characteristics of Specified Purpose Acquisition Companies (SPACs) and examine the performance of their securities over time. We find that SPACs represent a fairly unique way to raise capital. The incentives of their founders, underwriters, and investors are interdependent and successful business combinations generally result in significant returns to founders. We also show that different SPAC securities generate different reactions in response to the announcement news regarding their corporate status. While holders of all three securities realize abnormal returns on the announcement day, the strongest reaction is observed among the investors holding warrants, while common stock holders tend to react very mildl
|Item Type:||MPRA Paper|
|Original Title:||A Story on Spacs|
|Keywords:||SPAC; SPACs; Specified Purpose Acquisition Companies; Blank Checks; Private Equity; Venture Capital;|
|Subjects:||G - Financial Economics > G3 - Corporate Finance and Governance > G32 - Financing Policy ; Financial Risk and Risk Management ; Capital and Ownership Structure ; Value of Firms ; Goodwill
G - Financial Economics > G2 - Financial Institutions and Services > G24 - Investment Banking ; Venture Capital ; Brokerage ; Ratings and Ratings Agencies
|Depositing User:||Milos Vulanovic|
|Date Deposited:||25. Oct 2012 08:55|
|Last Modified:||22. Aug 2015 22:44|
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