Graduation Year
2022
Date of Submission
12-2021
Document Type
Campus Only Senior Thesis
Degree Name
Bachelor of Arts
Department
Economics
Reader 1
Eric Hughson
Terms of Use & License Information
Rights Information
© 2021 Kartikeya Agarwal
Abstract
Special-Purpose Acquisition Companies (SPACs) have caught the eyes of many investors, experienced and beginners alike, and continue to gain popularity each year. However, it is unknown what caused this sudden surge in attention for a mechanism that has been around for over a decade. This paper investigates whether investors’ attraction towards SPACs can be justified using returns using a long-horizon event study framework with recent data. The paper finds significant market outperformance for traditional IPOs but not SPACs. Overall, abnormal returns cannot justify the increase in numbers of SPACs in the period leading up to the surge, indicating the influence of investor hype.
Recommended Citation
Agarwal, Kartikeya, "Comparing Post-IPO Abnormal Returns Between SPACs and Traditional IPOs" (2022). CMC Senior Theses. 2866.
https://scholarship.claremont.edu/cmc_theses/2866
This thesis is restricted to the Claremont Colleges current faculty, students, and staff.
