We study SPACs in a continuous-time delegated investment model. Our model is built upon three unique features of SPACs … control over investment approval. Due to the misalignment in incentives, the sponsor has an increasing incentive to propose … control over investment approval reduces everyone’s welfare. This adverse effect is more pronounced if entrepreneurs …

discussed the pros and cons of private equity and whether the investment class is a viable alternative.While some Board members … of key issues questioning its viability.Ultimately, like any other investment, pros and cons should be weighed according …

This study investigates the effects of economic cycles on abnormal value creation of buyouts (BO) and on the investment … corresponding PE funds, we find that investment activity of initial fund flows is slightly pro-cyclical, while reinvestment activity …

Using a sample of Real Estate Investment Trusts (REITs), we show that institutional investors exploit location …

: incremental and lumpy with or without an exogenously given intensity. A bidder's investment cost comprises private information … seller from setting the exact dates of investment with the winner. However, the seller can set the royalty rate to equate the …. We derive two main conclusions. First, compared with the case in which investment is lumpy with an exogenously given …

This paper studies a principal-agent model where a risk-neutral principal delegates to a risk-neutral agent the … contract suggests that the principal should only reward the agent for outcomes that are significantly better than the safe …

about the asset? How do the disclosure rules of contract law influence the investigation decision? Shavell (1994) showed …-disclosure rule, which requires disclosure of material information, but only after the contract is concluded. We show that this rule … can be more efficient than both voluntary disclosure and mandatory (pre-contract) disclosure …