Date of Award


Degree Type

Doctoral Dissertation

Degree Name

Doctor of Business Administration (DBA)


Jack Welch College of Business & Technology


Submitted as partial fulfillment of the requirements for the degree of Doctor of Business Administration in Finance Sacred Heart University, Jack Welch College of Business and Technology, Sacred Heart University.

Dissertation Number DBA 08/2023

Dissertation Supervisor

Dr. Loran Chollete

Committee Member

Dr. Yong Wang

Committee Member

Dr. Jin Cai


Special Purpose acquisition companies (SPACs) are an alternative way private entities enter public markets through reverse merger of a publicly listed pool of capital. Price discovery is more transparent than the traditional IPO process, as valuations are negotiated between the SPAC Sponsor and the firm’s management team before shareholders approve through a shareholder vote. I conducted an OLS regression test for a relationship between SPAC activity, using capital invested in SPAC IPOs as a proxy, and various macroeconomic variables. I did not find evidence of a linear relationship. I examined the impact of the real interest rates on monthly pre-merger SPAC returns by conducting a panel OLS regression of 770 SPACS from 2011M01- 2022M06. The initial results were mixed when examining the relationship between the 10-year real interest rate, but a significant premium was associated with SPAC return when rates are negative. I observe SPAC returns are more correlated with uncertainty than with interest rate risk.

JEL Classification

E43, E44, G1, G12

Creative Commons License

Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.



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