Entry-timing, business groups and early-mover advantage within industry merger waves in emerging markets: A study of Indian firms

Mohammad Fuad () and Ashutosh Kumar Sinha ()
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Mohammad Fuad: Indian Institute of Management, Lucknow
Ashutosh Kumar Sinha: Indian Institute of Management, Lucknow

Asia Pacific Journal of Management, 2018, vol. 35, issue 4, No 4, 919-942

Abstract: Abstract Merger waves are periods of intense and concentrated merger activity which exhibit a wave-like pattern. Drawing upon the resource-based view, we examine the timing of entry and early-mover advantage within merger waves. Following a robust simulation-based methodology of wave analysis, we identify merger waves in eight industries during the time period 2000–2014. Firms affiliated to business groups were found to be early movers. A higher degree of internationalization is also associated with early movement of a firm. Within business groups, their multi-entity character is positively associated with early entry whereas their board interlock was negatively related with entry-timing. Further, early moving acquirers reap superior post-acquisition performance, thereby suggesting that early-mover advantages exist within merger waves.

Keywords: Merger and acquisition waves; Business groups; Timing; Resource-based view; Early-mover advantage (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (5)

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DOI: 10.1007/s10490-017-9531-2

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