Institutional Changes of Specified Purpose Acquisition Companies (SPACs)
The North American Journal of Economics and Finance, doi.org/10.1016/j.najef.2014.03.002
41 Pages Posted: 21 Feb 2013 Last revised: 8 Feb 2015
Date Written: February 1, 2013
This study documents the changes in the corporate design of modern Specified Purpose Acquisition Companies (SPACs) for the years 2003 to 2012. Do institutional characteristics of SPACs determine the success of their merger outcomes? The paper finds that SPACs significantly redesigned their structure in the period under observation. In addition, the probability of a merger for SPACs increases if they are able to announce the deal soon after the Initial Public Offering (IPO), if the deal focuses on China and when their IPO is underwritten by EarlyBirdCapital.
Keywords: Specified Purpose Acquisition Companies (SPACs), Blank Checks, M&A, IPO, Unit IPO, Warrants, Reverse Mergers, Private Equity
JEL Classification: G12, G14, G24, G30, G32, G34
Suggested Citation: Suggested Citation