📄 Abstract
This study examines the performance of Special Purpose Acquisition Companies (SPACs) over short-term (6-month) and long-term (2-year) horizons by comparing their returns against a zero benchmark. Using paired sample t-tests, we evaluate whether SPACs generate statistically significant excess returns or underperformance relative to the benchmark. The results indicate that SPACs do not exhibit significant outperformance or underperformance in either the 6-month (p = 0.080) or 2-year (p = 0.073) periods. Additionally, no significant difference is observed between short-term and long-term returns. These findings suggest that, on average, SPACs neither consistently beat nor fall short of the zero benchmark, implying that their performance aligns with a neutral baseline. The study highlights the importance of considering additional factors, such as market conditions and sector-specific trends, when assessing SPAC investments. Further research with expanded datasets and alternative benchmarks is recommended to enhance the robustness of these conclusions.
🏷️ Keywords
📚 How to Cite:
Prof. Dr. Tamizharasi , Prajwal S. Patil , VALUE CREATOR OR DESTROYER: EVIDENCE FROM SPECIAL PURPOSE ACQUISITION COMPANIES , Volume 11 , Issue 6, june 2025, EPRA International Journal of Multidisciplinary Research (IJMR) , DOI: https://doi.org/10.36713/epra22666