Home > Research > Publications & Outputs > The fast track IPO
View graph of relations

The fast track IPO: success factors for taking firms public with SPACs

Research output: Contribution to Journal/MagazineJournal articlepeer-review

<mark>Journal publication date</mark>10/2014
<mark>Journal</mark>Journal of Banking and Finance
Number of pages16
Pages (from-to)198-213
Publication StatusPublished
<mark>Original language</mark>English


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.