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SPACs in Europe: performance analysis and differences from the U.S

Author

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  • Cioli, Valentina
  • Giannozzi, Alessandro
  • Roggi, Oliviero

Abstract

This study investigates the long-term performance of Special Purpose Acquisition Companies (SPACs) in European markets. Utilizing a dataset of SPACs launched between 2005 and 2022, we analyze their short- and long-term performance, focusing on key milestones such as the announcement and completion of business combinations. The methodology integrates event study techniques and multivariate analysis to provide robust insights.

Suggested Citation

  • Cioli, Valentina & Giannozzi, Alessandro & Roggi, Oliviero, 2025. "SPACs in Europe: performance analysis and differences from the U.S," Finance Research Letters, Elsevier, vol. 85(PC).
    • Handle: RePEc:eee:finlet:v:85:y:2025:i:pc:s1544612325012899
    DOI: 10.1016/j.frl.2025.108031
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    References listed on IDEAS

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    1. Kiesel, Florian & Klingelhöfer, Nico & Schiereck, Dirk & Vismara, Silvio, 2022. "SPAC merger announcement returns and subsequent performance," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 134459, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    2. Elizabeth Blankespoor & Bradley E. Hendricks & Gregory S. Miller & Douglas R. Stockbridge, 2022. "A Hard Look at SPAC Projections," Management Science, INFORMS, vol. 68(6), pages 4742-4753, June.
    3. Dimitrova, Lora, 2017. "Perverse incentives of special purpose acquisition companies, the “poor man's private equity funds”," Journal of Accounting and Economics, Elsevier, vol. 63(1), pages 99-120.
    4. Kolb, Johannes & Tykvová, Tereza, 2016. "Going public via special purpose acquisition companies: Frogs do not turn into princes," Journal of Corporate Finance, Elsevier, vol. 40(C), pages 80-96.
    5. Kang, Hyung Cheol & Lee, Sangwon, 2023. "What has been changed in SPAC mergers? Evidence from Korea since their introduction," Finance Research Letters, Elsevier, vol. 56(C).
    6. John S. Howe & Scott W. O’Brien, 2012. "SPAC Performance, Ownership and Corporate Governance," Advances in Financial Economics, in: Advances in Financial Economics, pages 1-14, Emerald Group Publishing Limited.
    7. Floros, Ioannis V. & Sapp, Travis R.A., 2011. "Shell games: On the value of shell companies," Journal of Corporate Finance, Elsevier, vol. 17(4), pages 850-867, September.
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    Keywords

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    JEL classification:

    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

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