Global Spac Phenomenon : An Empirical Analysis

We examine a global sample of Special Purpose Acquisition Companies (SPACs) to find significant differences in short and long-term performance across geographical regions. In the short-term, SPACs in North America and Europe significantly outperform the market, while returns are negative in Asia Pacific. In contrast, the long-term performance in North America is negative, but positive in Europe and Asia Pacific. Further analysis points at the regulatory frameworks, and sponsors’ characteristics, such as capability, reputation, and number of deals in which they have engaged, as the most significant factors in long-term post-merger performance