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1 – 2 of 2Reem Zaabalawi, Gregory Domenic VanderPyl, Daniel Fredrick, Kimberly Gleason and Deborah Smith
The purpose of this study is to extend the Fraud Diamond Theory to celebrity Special Purpose Acquisition Companies (SPACs) and investigate their post-Initial Public Offering (IPO…
Abstract
Purpose
The purpose of this study is to extend the Fraud Diamond Theory to celebrity Special Purpose Acquisition Companies (SPACs) and investigate their post-Initial Public Offering (IPO) stock market performance.
Design/methodology/approach
After obtaining a sample of celebrity SPACs from the Spacresearch.com database, fraud risk characteristics were obtained from Lexis Nexus searches. Buy and hold abnormal returns were calculated for celebrity SPACs versus a small-cap equity benchmark for time intervals after IPO, and multiple regression analysis was performed to examine the relationship between fraud risk features and post-IPO returns.
Findings
Celebrity SPACs exhibit Fraud Diamond characteristics and significantly underperform a small-cap stock portfolio on a risk-adjusted basis after IPO.
Research limitations/implications
This study only examines celebrity SPACs that conducted IPOs on the NYSE and NASDAQ/AMEX and does not include those that are traded on the Over the Counter Bulletin Board (OTCBB).
Practical implications
Celebrity endorsement of SPAC vehicles attracts investors who may not be properly informed regarding the risk characteristics of SPACs. Accordingly, investors should be warned that celebrity SPACs underperform a small-cap equity portfolio and exhibit significant elements of fraud risk.
Social implications
The use of celebrity endorsement as a marketing device to attract investment in SPACs has regulatory implications.
Originality/value
To the best of the authors’ knowledge, this paper is the first to examine the fraud risk characteristics and post-IPO performance of celebrity SPACs.
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Keywords
This article explores whether six broad categories of activities undertaken by Canadian business scholars’ academics: publications record, citations record, teaching load…
Abstract
Purpose
This article explores whether six broad categories of activities undertaken by Canadian business scholars’ academics: publications record, citations record, teaching load, administrative load, consulting activities, and knowledge spillovers transfer, are complementary, substitute, or independent, as well as the conditions under which complementarities, substitution and independence among these activities are likely to occur.
Design/methodology/approach
A multivariate probit model is estimated to take into account that business scholars have to consider simultaneously whether or not to undertake many different academic activities. Metrics from Google Scholar of scholars from 35 Canadian business schools, augmented by a survey data on factors explaining the productivity and impact performances of these faculty members, are used to explain the heterogeneities between the determinants of these activities.
Findings
Overall, the results reveal that there are complementarities between publications and citations, publications and knowledge spillovers transfer, citations and consulting, and between consulting and knowledge spillovers transfer. The results also suggest that there are substitution effects between publications and teaching, publications and administrative load, citations and teaching load, and teaching load and administrative load. Moreover, results show that public and private funding, business schools’ reputation, scholar’s relational resources, and business school size are among the most influential variables on the scholar’s portfolio of activities.
Originality/value
This study considers simultaneously the scholar’s whole portfolio of activities. Moreover, the determinants considered in this study to explain scholars’ engagement in different activities reconcile two conflicting perspectives: (1) the traditional self-managed approach of academics, and (2) the outcomes-focused approach of university management.
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