SPAC: A Comparative Study Under US, Asia and Italian Corporate Framework. Soft Law vs. Hard Law.
65 Pages Posted: 8 Aug 2014
Date Written: August 6, 2014
Abstract
The purpose of this work is to prove that SPACs are a useful investment tool to empower the capital markets, and promote a new “M&A era”, arguing the main economical issues of asymmetric information, moral hazard and agency costs that could arise.
Thus, this paper will suggest for the first time that a soft regulation approach could represent – in addition to corporate governance mechanisms – the best alternative to hard law provisions in order to protect investors and try to resolve the economical and legal issues by virtue of “signaling”.
Keywords: SPACs, IPOs, Information asymmetry, Soft law, Hard law
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