Unit Ipo'S: A Case Of Specified Purpose Acquisition Companies (Spacs)
Unit initial offerings are innovative way to finance corporate activities in capital markets and are usually conducted by companies that carry a high level of asymmetry information. The degree of information asymmetry insignificantly impacts the pricing at the IPO day in our sample. In addition to outlying the structure of Unit IPO we document behavior of underwriters in this process and shed the light on their incentives through time. We find that the most successful underwriters are relatively small investment banks by size that have a niche in this market. In addition we find that the structure of offering is changing and underwriters are using fewer warrants in designing as well as charging lower fees for their services.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Chemmanur, Thomas J. & Fulghieri, Paolo, 1997.
"Why Include Warrants in New Equity Issues? A Theory of Unit IPOs,"
Journal of Financial and Quantitative Analysis,
Cambridge University Press, vol. 32(01), pages 1-24, March.
- Chemmanur, T.J. & Fulghieri, P., 1994. "Why Include Warrants in New Equity Issues? A Theory of Unit IPOs," Papers 95-05, Columbia - Graduate School of Business.
- Lakicevic, Milan & Vulanovic, Milos, 2012.
"A Story on SPACs,"
65843, ZBW - German National Library of Economics.
- Shane A. Corwin & Paul Schultz, 2005. "The Role of IPO Underwriting Syndicates: Pricing, Information Production, and Underwriter Competition," Journal of Finance, American Finance Association, vol. 60(1), pages 443-486, 02.
- Schultz, Paul, 1993. "Unit initial public offerings *1: A form of staged financing," Journal of Financial Economics, Elsevier, vol. 34(2), pages 199-229, October.
When requesting a correction, please mention this item's handle: RePEc:mje:mjejnl:v:9:y:2013:i:1:p:45-52. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Eryk Wdowiak)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.