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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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Ann Wairimu Mburu, David Githinji Njuguna, Fredrick Musieba, Charles Nzila, Virginia Kimani and Alice Wangai
The purpose of this paper is to investigate the efficacy of bacterial exopolysaccharides (Eps) in reactive black 5 (RB5) textile dye wastewater bioremediation.
Abstract
Purpose
The purpose of this paper is to investigate the efficacy of bacterial exopolysaccharides (Eps) in reactive black 5 (RB5) textile dye wastewater bioremediation.
Design/methodology/approach
The Eps were produced by bacteria isolated from cotton gin trash soils collected from different cotton-growing regions in Kenya for comparison purposes. A broth medium reconstituted using molasses was assessed for its capacity to produce the Eps. RB5 textile dye wastewater was optimized for dye removal under different temperatures, times and molasses concentrations. Dye removal was studied by Lovibond-Day Light Comparator, UV–Vis spectrophotometer and FTIR.
Findings
It was found that cotton gin trash soils contained Eps-producing bacteria. Three of the Eps studied were found to have the capacity to remove at least 80% of the dye from the wastewater.
Research limitations/implications
This research did not assess the efficacy of the RB5 dye removal from the wastewater by mixtures of the Eps.
Practical implications
Bioremediation of textile dye wastewater with Eps produced by bacteria cultured from cotton gin trash soil is significant because it will offer an effective and cleaner alternative to the chemical coagulants.
Social implications
Alternative treatment of textile wastewater with the Eps would result in safer water being released into the water bodies as opposed to the chemically treated wastewater that contains remnant chemicals.
Originality/value
Research on the use of Eps produced by bacteria isolated from cotton gin trash soils for removal of RB5 dye from textile wastewater has not been done before.
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