Executive Visibility: A Worthwhile Investment or a Futile Pursuit?

60 Pages Posted: 15 Nov 2022 Last revised: 24 Aug 2023

Date Written: August 18, 2023


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

Suggested Citation

Dimitrova, Lora and Fong, Margaret, Executive Visibility: A Worthwhile Investment or a Futile Pursuit? (August 18, 2023). Available at SSRN: https://ssrn.com/abstract=4264933 or http://dx.doi.org/10.2139/ssrn.4264933

Lora Dimitrova

University of Exeter ( email )

Northcote House
The Queen's Drive
Exeter, Devon EX4 4QJ
United Kingdom

Margaret Fong (Contact Author)

HEC Montreal ( email )

3000, Chemin de la Côte-Sainte-Catherine
Montreal, Quebec H2X 2L3

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