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2023 | OriginalPaper | Buchkapitel

The Rise of Fintech and Healthcare SPACs

verfasst von : Victoria Patsika

Erschienen in: Essays on Financial Analytics

Verlag: Springer International Publishing

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Abstract

This study examines the level acquisition companies (SPACs). The results demonstrate low underpricing for both types of SPAC, with unit and share prices of around $10 from 2010 to 2021. Leverage, market capitalisation, the size measured by total assets, and management teams with finance experience have a statistically significant impact on underpricing. Interestingly, the management team affected the share price (closing price) when the SPACs merged with the target companies on the first trading day. SPACs appear to be an alternative in comparison with IPOs. Furthermore, the relevance of agency theory, information asymmetry theory, signalling theory, and the winner’s curse is confirmed. The results provide practical implications for private target companies and investors that are interested in SPACs.

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Vorheriges Kapitel An Advanced Approach to Algorithmic Portfolio Management

Nächstes Kapitel An Answer to Roll’s Critique (1977) 45 Years Later

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A SPAC, a blank check company created by a sponsor, goes public to raise capital and then find a non-listed operating company to merge with, in the process taking the company public.

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Titel: The Rise of Fintech and Healthcare SPACs
verfasst von: Victoria Patsika
Verlag: Springer International Publishing
Buch: Essays on Financial Analytics
Print ISBN: 978-3-031-29487-7

Electronic ISBN: 978-3-031-29050-3

Copyright-Jahr: 2023
DOI: https://doi.org/10.1007/978-3-031-29050-3_13

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