Celebrity SPACs: Advantageous, or Gimmicky?

Journal of Investing, 33 (February), Forthcoming.

Posted: 5 Dec 2023

See all articles by Emre Kuvvet

Emre Kuvvet

Nova Southeastern University; The Independent Institute

Date Written: February 1, 2024


Celebrity involvement with special purpose acquisition companies (SPACs) has received intense criticism by the media and the SEC. Should investment managers be wary of celebrity SPACs? We examine the role of celebrities in the SPAC process and find that celebrity SPACs have more fundings, higher-quality SPAC intermediaries, higher-quality target firms, higher returns, and shorter duration of target acquisitions. Sponsors of celebrity SPACs also have more “skin in the game.” We show that while celebrity chairpeople, CEOs, and board members have positive impacts on the SPAC process, celebrity advisors do not have such positive effects.

Keywords: special purpose acquisition company; SPAC; initial public offering; IPO; celebrity

JEL Classification: G14; G24; G32; G34; G41

Suggested Citation

Kuvvet, Emre, Celebrity SPACs: Advantageous, or Gimmicky? (February 1, 2024). Journal of Investing, 33 (February), Forthcoming., Available at SSRN: https://ssrn.com/abstract=4648511

Emre Kuvvet (Contact Author)

Nova Southeastern University ( email )

Ft. Lauderdale, FL 33314
United States

The Independent Institute ( email )

100 Swan Way
Oakland, CA 94621-1428
United States

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