Graduation Year


Date of Submission


Document Type

Campus Only Senior Thesis

Degree Name

Bachelor of Arts



Reader 1

Eric Hughson

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© 2021 Kartikeya Agarwal


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.

This thesis is restricted to the Claremont Colleges current faculty, students, and staff.