We examine the effect of first official SEC announcement regarding Special Purpose Acquisition Companies (SPACs), which is an alternative mechanism of taking firms public and suggested to enjoy a regulation gap compared to its counterparts. If so, a big adverse effect may be expected at the time...

We examine the effect of first official SEC announcement on April 12, 2021, regarding Special Purpose Acquisition Companies (SPACs), which is an alternative mechanism of taking firms public. A prevailing opinion of academics, practitioners, and regulators alike, is that the primary appeal of the...