Gahng, Minmo; Ritter, Jay R.; Zhang, Donghang - 2021
Special Purpose Acquisition Company (SPAC) IPOs boomed starting in 2020. While SPAC IPO investors have earned 12.0% per year, returns for investors in merged companies are more complex. They have earned -7.3% in the first year on common shares but 64.4% on warrants. We rationalize why certain...
