SHENG-SYAN CHENHuang, Chia WeiChia WeiHuangLin, Chih YenChih YenLin2023-05-162023-05-162017-0600463892https://scholars.lib.ntu.edu.tw/handle/123456789/631095We examine how learning from observing the acquisition outcomes of innovation leaders affects the acquisition decisions and performance of followers in an industry. Followers tend to increase the probability of acquisition and the size of an acquisition when innovation leader acquisitions produce more favorable outcomes, and reduce both when innovation leader acquisitions suffer more unfavorable outcomes. Industry competition, environmental uncertainty, prior acquisition experience, geographic proximity, and managerial incentives are important mechanisms affecting observational learning in acquisitions. Follower acquisitions perform better when innovation leaders’ acquisition outcomes convey more favorable signals, and more poorly when they convey more unfavorable signals.enRESEARCH-AND-DEVELOPMENT; MERGER WAVES; CORPORATE GOVERNANCE; INFORMATIONAL CASCADES; CONSUMPTION EVIDENCE; CEO OVERCONFIDENCE; INTERACTION TERMS; FIRM PERFORMANCE; SOCIAL-INFLUENCE; BAD BIDDERS[SDGs]SDG9journal article10.1111/fima.121322-s2.0-84978399489WOS:000403298700007https://api.elsevier.com/content/abstract/scopus_id/84978399489