Volume 2022 : 2
Priorities for financial services regulation until the end of the mandate
Ten years of prudential supervision in a fast-changing economic environment
Digitization in the banking sector. Threat or opportunity?
10 years of prudential supervision at the NBB
[The European banking supervision from a transatlantic perspective] Is the water bluer on the other side of the pond?
[10 years of prudential supervision at the National Bank of Belgium] Report of the panel discussion
[10 years of prudential supervision at the National Bank of Belgium] Closing remarks
Bank Industry specialization and bank performance
How do capital requirements and supervision impact the profitability of investment banks in the EU? An empirical analysis
Performantie van financiële instellingen na uitgifte van groene obligaties
How does the European corona bank dividend ban affect banks’ market valuation?
Bank financing to SMEs during a global pandemic
Institutional Factors and Insurance Profitability. Empirical evidence
Special Purpose Acquisition Companies: The impact of the conflict of interest between SPAC sponsors and investors on the stock performance in the US market
Duurzaamheid als competitief voordeel. De competitieve wenselijkheid om verder te gaan dan de geldende milieuregelgeving
Priorities for financial services regulation until the end of the mandate
Ten years of prudential supervision in a fast-changing economic environment
Digitization in the banking sector. Threat or opportunity?
10 years of prudential supervision at the NBB
[The European banking supervision from a transatlantic perspective] Is the water bluer on the other side of the pond?
[10 years of prudential supervision at the National Bank of Belgium] Report of the panel discussion
[10 years of prudential supervision at the National Bank of Belgium] Closing remarks
Bank Industry specialization and bank performance
How do capital requirements and supervision impact the profitability of investment banks in the EU? An empirical analysis
Performantie van financiële instellingen na uitgifte van groene obligaties
How does the European corona bank dividend ban affect banks’ market valuation?
Bank financing to SMEs during a global pandemic
Institutional Factors and Insurance Profitability. Empirical evidence
Special Purpose Acquisition Companies: The impact of the conflict of interest between SPAC sponsors and investors on the stock performance in the US market
Duurzaamheid als competitief voordeel. De competitieve wenselijkheid om verder te gaan dan de geldende milieuregelgeving
Année
2022
Volume
2022
Numéro
2
Page
140
Langue
Anglais
Juridiction
Référence
C-L. VAN HOUTTE en J. VAN GANSE, “Special Purpose Acquisition Companies: The impact of the conflict of interest between SPAC sponsors and investors on the stock performance in the US market”, BFW 2022, nr. 2, 140-145
Résumé
Special Purpose Acquisition Companies (SPAC) have been part of the IPO market for nearly two decades, but their numbers have drastically increased over the last three years. The difference in return on investment between SPAC sponsors and investors has shed some light on the presence of a conflict of interest in the SPAC sector. This paper illustrates and quantifies the impact of the conflict of interest between SPAC sponsors and investors using a sample of 123 US SPACs that acquired a target or liquidated between January 2019 and March 2021. First, SPACs outperform the RUSSEL 2000 Index by 31.18% between the announcement and the closing of the acquisition. However, 12 months post-acquisition, SPAC's performance deteriorates relative to the RUSSEL 2000 Index, with an average relative return of -39.44%. Second, a multivariate analysis on SPAC stock performance post-acquisition shows significantly lower stock performances when the following signs of a conflict of interest are identified: deals announced over 6 months past the IPO (closer to the time limit), higher redemption rates from investors (lack of trust in the announced deal), higher sponsor ownership percentage (results in investor ownership dilution) and lower institutional ownership percentage.
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