Analyzing European SPACs

This paper analyzes Special Purpose Acquisition Companies (SPACs) in Europe. We document various aspects associated with European SPACs by using a unique and hand-collected data sample encompassing all 19 SPACs which have been listed on European stock exchanges since 2005. The paper shows that in spite of being listed on European stock exchanges, many SPACs do not have a European focus, neither in terms of investors, nor in their choice for target companies. Additionally, our results show that there is a great heterogeneity in the choice for target companies among the SPACs, especially with regard to financial performance, and that SPAC investors react negatively to the choice for an underperforming target company