College - Author 1

Orfalea College of Business

Department - Author 1

Economics Department

Degree Name - Author 1

BS in Economics



Primary Advisor

Jacqueline Doremus, Orfalea College of Business, Economics Department


The U.S. SPAC market has faced explosive growth in recent years, but the financial performance of these investments is weakly understood. Therefore, this paper contributes an analysis on the long-term performance of SPAC common equity for SPACs that completed acquisitions between 2016 and 2018. Using hand-collected data from the Compustat – Capital IQ and SEC EDGAR databases, this paper runs a two-sample t-test assuming unequal variances and constructs an Ordinary Least Squares (OLS) regression model. In conclusion of the t-test, the results suggest that SPAC common shares do not outperform the market over a three-year holding period. In addition, the regression model identifies SPAC behaviors that signal long-term positive yields in common share price. These findings inform investment strategies, and the paper goes on to discuss further positions an investor can create to gain exposure to this rising investment class.

Chamberlain_Appendix.xlsx (61 kB)