Title page for ETD etd-04102009-123722


Type of Document Dissertation
Author Kim, Haksoon
Author's Email Address hkim11@lsu.edu
URN etd-04102009-123722
Title Essays on Management Quality, IPO Characteristics and the Success of Business Combinations
Degree Doctor of Philosophy (Ph.D.)
Department Finance (Business Administration)
Advisory Committee
Advisor Name Title
Gary C. Sanger Committee Chair
Ji-Chai Lin Committee Member
Robert J. Newman Committee Member
William R. Lane Committee Member
Joseph A. Legoria Dean's Representative
Keywords
  • underpricing
  • SPAC
  • special purpose acquisition company
Date of Defense 2009-03-25
Availability unrestricted
Abstract
A Special Purpose Acquisition Company (SPAC) is a blank check company with no business operation but management quality. It raises money through unit IPO and put proceeds in a trust account for future business combination. In the post IPO market, the market price would reflect the value of trust account and management quality of profitably acquiring a firm with business operation. Thus, SPACs provide a unique setting to examine the pricing of management quality. Compared with regular IPO firms, SPAC management has more industry experience and the market put a higher value for SPACs with better management experience. SPACs with higher market value for management experience take less time to consummate business combination and have better long-term unit price performance. The results imply that management experience is valuable and has a significant effect on the performance of IPO or business combination. Also, shorter time to deal or better long-term unit price performance during IPO or business combination period leads to better unit return performance or more institutional interest of SPAC business combination. The results are consistent with the merger-driven IPO literature.
Files
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