Special purpose acquisition companies (SPACs) are created to raise capital and then find non-listed operating companies with which to merge. While most of the extant research has focused on SPAC initial public offerings, we study what happens when SPACs announce business combinations. Our analysis of 236 'deSPACs' completed between January 2012 and June 2021 in the United States documents an average short-term announcement return of +7.4% and a 1-year abnormal return of -14.1% (-18.0% over 2 years) for public investors beginning from the merger announcement. Short-term returns decrease with longer times from initial public offering until announcement.

(2022). SPAC merger announcement returns and subsequent performance [journal article - articolo]. In EUROPEAN FINANCIAL MANAGEMENT. Retrieved from http://hdl.handle.net/10446/226949

SPAC merger announcement returns and subsequent performance

Vismara, Silvio
2022-04-21

Abstract

Special purpose acquisition companies (SPACs) are created to raise capital and then find non-listed operating companies with which to merge. While most of the extant research has focused on SPAC initial public offerings, we study what happens when SPACs announce business combinations. Our analysis of 236 'deSPACs' completed between January 2012 and June 2021 in the United States documents an average short-term announcement return of +7.4% and a 1-year abnormal return of -14.1% (-18.0% over 2 years) for public investors beginning from the merger announcement. Short-term returns decrease with longer times from initial public offering until announcement.
articolo
Kiesel, Florian; Klingelhöfer, Nico; Schiereck, Dirk; Vismara, Silvio
(2022). SPAC merger announcement returns and subsequent performance [journal article - articolo]. In EUROPEAN FINANCIAL MANAGEMENT. Retrieved from http://hdl.handle.net/10446/226949
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Utilizza questo identificativo per citare o creare un link a questo documento: http://hdl.handle.net/10446/226949
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