Executive Visibility: A Worthwhile Investment or a Futile Pursuit?

Abstract

We examine the role of executive visibility in attracting investors to Special Purpose Acquisition Companies (SPACs). We assess visibility in the press, on the web, and on social media. The most visible executives raise 58% more funds, complete IPOs in a third less time, and attract more investors at merger announcements than their least visible counterparts. However, this initial outperformance is not sustained in the long run, suggesting that visibility functions more as a marketing tool. Institutional investors trade on visibility by selling SPACs with less visible executives and buying those with highly visible executives, attracting retail investors, and securing their exit strategy ahead of merger completion.

Keywords: Executives, Visibility, Reputation, SPACs

JEL Classification: D83, G19, G34, M12