Seminar 217, Risk Management: A Sober Look at SPACs (Online)

Seminar 217, Risk Management: A Sober Look at SPACs (Online)

Mar 2, 2021, 11:00 AM - 12:30 PM | Online | Happening As Scheduled
Michael Ohlrogge, New York University (Speaker)

ABSTRACT: Special Purpose Acquisition Companies (“SPACs”)— touted as a better alternative to an IPO for taking a company public—have become the next big thing in the securities markets. This paper analyzes the structure of SPACs and the costs embedded in that structure. Based on a sample of all SPACs that merged between January 2019 and June 2020, we find that transaction costs embedded in the...