What has been changed in SPAC mergers? Evidence from Korea since their introduction

Research output: Contribution to journalArticlepeer-review

Abstract

We examine the development of special purpose acquisition companies (SPACs) in Korea from their introduction with a regulation change in 2010. We find that later “generation” SPACs have featured a lower merger success rate, paid a higher merger premium, and taken longer to consummate a merger. Also, more experienced SPAC sponsors have been less likely to secure a merger deal and more likely to pay a higher premium if they have secured a deal. Our results are consistent with the argument that there is increased competition among SPACs for the limited pool of suitable targets.

Original languageEnglish
Article number104140
JournalFinance Research Letters
Volume56
DOIs
StatePublished - Sep 2023

Keywords

  • Korean SPAC
  • Merger and acquisition
  • SPAC competition
  • Special purpose acquisition company

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