We examine the financial reporting quality of Special Purpose Acquisition Corporations (SPACs) following a successful merger. We compare a sample of SPACs with completed mergers from 2006-2020 to initial public offering (IPO) firms in the same industry covering the same period. Compared to...

Using the Credit Rating Agency Reform Act of 2006, we examine the credibility of mandatory disclosure by credit rating agencies (CRAs) on managerial learning from stock prices. We find an increase in investment-price sensitivity for firms affected by the Act. Consistent with managers relying...