Date of Submission
Campus Only Senior Thesis
Bachelor of Arts
© 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.
Agarwal, Kartikeya, "Comparing Post-IPO Abnormal Returns Between SPACs and Traditional IPOs" (2022). CMC Senior Theses. 2866.
This thesis is restricted to the Claremont Colleges current faculty, students, and staff.