Open Access. Powered by Scholars. Published by Universities.®
Articles 1 - 1 of 1
Full-Text Articles in Business
Dispelling The Hype: An Examination Of Spac Common Equity Performance, Lauren Helen Chamberlain
Dispelling The Hype: An Examination Of Spac Common Equity Performance, Lauren Helen Chamberlain
Economics
The U.S. SPAC market has faced explosive growth in recent years, but the financial performance of these investments is weakly understood. Therefore, this paper contributes an analysis on the long-term performance of SPAC common equity for SPACs that completed acquisitions between 2016 and 2018. Using hand-collected data from the Compustat – Capital IQ and SEC EDGAR databases, this paper runs a two-sample t-test assuming unequal variances and constructs an Ordinary Least Squares (OLS) regression model. In conclusion of the t-test, the results suggest that SPAC common shares do not outperform the market over a three-year holding period. In addition, the …