What are the legal and regulatory frameworks governing Special Purpose Acquisition Companies (SPACs) in various jurisdictions?
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Special Purpose Acquisition Companies (SPACs) are subject to varying legal and regulatory frameworks across jurisdictions. In the US, SPAC regulation focuses on business function and enforcement , while Europe and the UK adopt a regulatory approach based on objectives informed by general principles of company and financial law . SPACs, essentially cash shell entities, have surged in popularity since 2020, offering an alternative to traditional IPOs and attracting companies seeking equity financing amidst market volatility . Studies analyzing SPAC returns highlight the significance of warrants issued in SPAC IPOs in explaining deSPAC returns, emphasizing the importance of this factor in SPAC performance assessment . Additionally, research suggests that characteristics of target firms, such as corporate or private equity backing, significantly impact market performance post-merger, providing insights for SPAC sponsors seeking to enhance investor value .
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| Papers (4) | Insight |
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| SPAC regulation in the US focuses on business and enforcement, while the EU and UK emphasize objectives based on general company and financial law principles. | |
| The paper discusses SPACs in Asian financial centers, highlighting their surge since 2020. It does not delve into the specific legal and regulatory frameworks governing SPACs in various jurisdictions. | |
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| Not addressed in the paper. |
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