Are SPAC Revenue Forecasts Informative?

• 成果类型: Article
• 署名作者: Dambra, Michael; Even-Tov, Omri; Munevar, Kimberlyn
• 署名单位: State University of New York (SUNY) System; University at Buffalo, SUNY; University of California System; University of California Berkeley
• 刊物名称: ACCOUNTING REVIEW
• ISSN/ISSBN: 0001-4826
• DOI: 10.2308/TAR-2021-0630
• 发表日期: 2023
• 页码: 121-152
• 关键词: SECURITIES LITIGATION REFORM; disclosure; FUTURE; earnings; IMPACT

摘要

This paper examines the informativeness of special purpose acquisition company (SPAC) revenue forecasts. We document a positive association between the compound annual growth rate in revenue forecasts and abnormal returns, retail trading, and Twitter activity in the five-day window surrounding the disclosure of a merger announcement. By contrast, we find limited evidence that institutional investors and traditional information intermediaries respond to SPAC revenue forecasts. We also find evidence that SPAC revenue forecasts positively predict future operating underperformance, stock underperformance, and class action lawsuits. Overall, our results affirm the SEC's concerns about the attractiveness of aggressive revenue projections to retail investors.