Research output: Contribution to Journal/Magazine › Journal article › peer-review
Research output: Contribution to Journal/Magazine › Journal article › peer-review
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TY - JOUR
T1 - The fast track IPO
T2 - success factors for taking firms public with SPACs
AU - Cumming, Douglas
AU - Hass, Lars Helge
AU - Schweizer, Denis
PY - 2014/10
Y1 - 2014/10
N2 - Special Purpose Acquisition Companies (SPACs) are shells initiated with the sole intent of acquiring a single privately held company. SPAC shareholders vote on this acquisition, and in this paper we identify the factors that affect approval probability. Surprisingly, the data indicate more experienced managers and boards do not enhance the probability of deal approval. Similarly, glamor underwriters and larger underwriter syndicates are less likely to be associated with successful SPACs. Further, we find a negative relation between the presence of active investor (hedge funds and private equity funds) shareholdings in a SPAC and approval probability.
AB - Special Purpose Acquisition Companies (SPACs) are shells initiated with the sole intent of acquiring a single privately held company. SPAC shareholders vote on this acquisition, and in this paper we identify the factors that affect approval probability. Surprisingly, the data indicate more experienced managers and boards do not enhance the probability of deal approval. Similarly, glamor underwriters and larger underwriter syndicates are less likely to be associated with successful SPACs. Further, we find a negative relation between the presence of active investor (hedge funds and private equity funds) shareholdings in a SPAC and approval probability.
KW - Special Purpose Acquisition Company (SPAC)
KW - Ownership structure
KW - Board structure
KW - Voting
U2 - 10.1016/j.jbankfin.2014.07.003
DO - 10.1016/j.jbankfin.2014.07.003
M3 - Journal article
VL - 47
SP - 198
EP - 213
JO - Journal of Banking and Finance
JF - Journal of Banking and Finance
SN - 0378-4266
ER -