Honors Projects
Showing 1 - 7 of 7 Items
An Alternative Perspective on Special Purpose Acquisition Companies (SPACs): Underpricing in the “No Target" Phase
Date: 2023-01-01
Creator: Anna G Constantine
Access: Open access
- Special Purpose Acquisition Companies marked a restructuring of the often-fraudulent 1980s blank check company, an entity gathering funds to merge or acquire another business entity. Based on the Special Purpose Acquisition Company structure, “the stock price should be greater than or equal to the pro-rata trust value, discounted from the SPAC’s expiration date, at all times prior to the shareholder vote date.” In this study, I research the “no target” phase of the Special Purpose Acquisition Company’s lifecycle to evaluate whether there is a difference between their trust value and their market capitalization. Based on previous research, we know that there is a discount to trust value prior to 2009; however, I postulate the decoupling of the SPAC merger approval vote and the vote for investors to redeem may eliminate this discount. Using a first difference regression to establish the premium to the average trust value of 1,057 Special Purpose Acquisition Companies traded between 2005 and 2022, we find that both the period before 2010 and after 2010 trades at a negative premium, or discount. Because the decoupling of the merger vote and the redemption vote did not eliminate the negative premium to trust value, I postulate that the structure of SPAC redemptions, modeled as a call option with decaying time value, may be responsible for this mispricing. I also draw opportunities for future research to investigate if the embedding of a call option into the SPAC redemption structure discourages shareholders from desiring merger outcomes early in the SPAC lifecycle.
Bubbles & Bought-Ins: Reevaluating Price Movements in the Art Market
Date: 2020-01-01
Creator: Silas Wuerth
Access: Open access
- Employs two tests for bubbles in the art market. First, a right-hand forward recursive augmented Dickey-Fuller test to identify explosive price movements. Second, a test for the statistical significance of hedonic regression price index coefficients after controlling for equity market performance. Finds strong evidence for a speculative bubble in the pre-Great Recession "Post-War & Contemporary" market. Evidence for this bubble diminishes but does not dissipate after accounting for the effect of failed sales on index returns.
Distance Based Pre-clustering for Deep Time-Series Forecasting: A Data Selection Approach This record is embargoed.
- Embargo End Date: 2025-05-16
Date: 2024-01-01
Creator: Leopold Felix Spieler
Access: Embargoed
Systemic Risk in the Airline Industry: Investigating the Effects of Network Interconnectedness on MES Access to this record is restricted to members of the Bowdoin community. Log in here to view.
Date: 2020-01-01
Creator: Angela Goldshteyn
Access: Access restricted to the Bowdoin Community
Blockholders and Their Effect on Project Value: An Empirical Approach of Understanding Ownership Concentration and Firm Value Using an Event Study Framework
Date: 2017-05-01
Creator: Xuanming Guo
Access: Open access
- This study uses an event study framework to find the relationship between ownership concentration and project value. I find that project value first increases with ownership concentration when block size, the percentage ownership of the largest blockholder, is smaller than 10%, then declines with ownership concentration when block size gets larger, and finally rises again when block size exceeds 30%. However, my research only suggests an ambiguous relationship between ownership concentration and firm value. Additionally, ownership concentration seems to affect both the timing of market responses and the market’s interpretation of large investment projects.
How do Robinhood Investors React to Macroeconomic News? Access to this record is restricted to members of the Bowdoin community. Log in here to view.
- Restriction End Date: 2025-06-01
Date: 2024-01-01
Creator: Aditya S Pall-Pareek
Access: Access restricted to the Bowdoin Community
Agent-Based Modeling of Asset Markets: A Study of Risks, Preferences, and Shocks This record is embargoed.
- Embargo End Date: 2026-05-18
Date: 2023-01-01
Creator: Evan Albers
Access: Embargoed