Why SPACs Are Booming, and Is there the SPAC Bubble?

Authors :: João Gomes
I. Drechsler
D. Erickson
N. Roussanov
Source :: Review of Business and Economics Studies. 9:38-45
Publication Year :: 2021
Publisher :: Financial University under the Government of the Russian Federation, 2021.
Abstract: As of May 10, 2021, according to SPAC Alpha, there were 315 special purpose acquisition company (SPAC) IPOs completed YTD – more than 100 per cent higher than the number of SPAC IPOs in the previous four years combined. David Erickson, Itamar Drechsler and Nikolai Roussanov explore how the SPAC market exploded in 2020 and what may happen in the future.