명성효과와 IPO 시장 상황이 SPAC 상장과 초기 저평가에 미치는 영향

In the early to mid-2000s, there were many backdoor listings in Korean stock market instead of conventional initial public offerings(IPOs). Many of the companies that entered the market through backdoor failed to maintain their corporate value and caused huge losses to investors who invested in the company. Thus the government introduced Special Purpose Acquisition Company (SPAC) model in Korea and suggested it as an alternative to the backdoor listing. SPAC, which has the advantage of being easier to list than a typical IPO, presents two important uncertainties. First of all, investors face uncertainty about the SPAC itself, and after listing, the investor will also face another uncertainty of whether the SPAC they invest will actually acquire a company. As a way to mitigate these uncertainties, SPAC listed companies can utilize the reputation of the lead underwriter but the underwriter must also consider its own reputation. In addition, because SPACs and IPOs look for investors’ attention, market conditions also act as important determinants. In this study, we find that the reputation of the underwriters is not statistically significant in choosing the SPAC listing. However, market conditions turn out to be an important factor, and investors tend to be the most preferred when reputable underwriters choose IPOs. After all, it is not advisable for investors to invest in uncertain financial instruments, but if they have to, they should at least consider the underwriter’s reputation.