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

Hyung Cheol Kang and Sangwon Lee

Finance Research Letters, 2023, vol. 56, issue C

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.

Keywords: Korean SPAC; Special purpose acquisition company; SPAC competition; Merger and acquisition (search for similar items in EconPapers)
JEL-codes: G30 G32 G34 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:56:y:2023:i:c:s1544612323005123

DOI: 10.1016/j.frl.2023.104140

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