Akdoğu, Evrim and Şimşir, Şerif Aziz and Meriç Yılmaz, Merve (2022) SPACs and the regulation gap: the effect of first SEC intervention on share and warrant returns. Finance Research Letters, 50 . ISSN 1544-6123 (Print) 1544-6131 (Online)
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Official URL: https://dx.doi.org/10.1016/j.frl.2022.103316
Abstract
We examine the effect of first official SEC announcement regarding Special Purpose Acquisition Companies (SPACs), which is an alternative mechanism of taking firms public and suggested to enjoy a regulation gap compared to its counterparts. If so, a big adverse effect may be expected at the time of the first regulatory intervention. Our results do not show support for this hypothesis; however, we find that some SPAC characteristics lead to significantly worse returns in a multivariate setting. Interestingly, despite the regulation targeting warrant accounting directly, we find that offering warrants in SPAC units have a positive impact on announcement returns.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | Event study; IPOs; New technology; Regulation; Securities Exchange Commission; Special Purpose Acquisition Company (SPAC) |
| Divisions: | Sabancı Business School > Accounting and Finance Sabancı Business School |
| Depositing User: | Evrim Akdoğu |
| Date Deposited: | 22 Mar 2023 14:49 |
| Last Modified: | 22 Mar 2023 14:49 |
| URI: | https://research.sabanciuniv.edu/id/eprint/45080 |
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