Does the second mouse get the cheese in the trap? Evidence from industry-level acquisition waves in China

This paper studies the relationship between acquirers' entry timing and acquisition performance in industry-level acquisition waves in China. Based on a sample of the acquisition events of Chinese A-share listed companies in acquisition waves between 2009 and 2018, we found an inverted U-shaped relationship between entry timing and acquisition performance, suggesting that early-follower advantages exist in industry-level acquisition waves of emerging market countries. We also found that environmental uncertainty weakened this relationship while social capital strengthened it. This study provides a new theoretical framework and empirical evidence for early-follower advantages in the acquisition waves of emerging market countries and has implications for how companies manage their acquisitions.