Academic Impact: SEC cites UB School of Management research in ruling

Research from the University at Buffalo School of Management recently made an impact on new rules adopted by the U.S. Securities and Exchange Commission related to special purpose acquisition companies (SPACs).

Regulators were concerned that these blank-check companies were misleading investors, and a recent study from Michael Dambra, the Kenneth W. Colwell Chair of Accounting and Law in the UB School of Management, found that the more revenue growth a company projects when it announces it will be acquired by a SPAC, the more investors buy the SPAC’s stock—and the less likely those projections are to come true.

So Dambra and his study co-authors, Omri Even-Tov, assistant professor of accounting; and Kimberlyn George, PhD candidate, both from the University of California Berkley Haas School of Business, drafted a comment letter to the SEC summarizing their findings. As a result, the SEC removed safe harbor protections for companies that go public via a SPAC, and cited their letter 17 times in their ruling.