We explore whether pioneering advantages exist for early-mover acquirers in industry acquisition waves by examining both combined (target and acquirer) and acquirer stock returns. Combined abnormal returns are higher for acquisitions that occur at the beginning of acquisition waves. However, for acquirers' returns, only strategic pioneers-those acting in manners consistent with having superior information-capture significant advantages. Specifically, early-mover acquirers who realize superior stock returns are those that conduct acquisitions in related industries, during industry expansionary phases, and finance their acquisitions as financial theory suggests they should when they possess an informational advantage-with cash. Our findings extend the first-mover literature to corporate practices and link these practices to acquisition returns.First-mover advantages represent an important concept in the strategic management literature and in business practice. A first-mover advantage implies that, by acting early relative to peers, a pioneer may establish a competitive advantage that enables it to garner positive economic profits (Lieberman and Montgomery, 1988: 41). In the context of the resource-based view of the firm, an early mover can develop a resource that is rare, valuable, difficult to imitate and nonsubstitutable (Barney, 1986;Conner, 1991;Makadok, 1998;Wernerfelt, 1984). Despite the relatively wide acceptance of first-mover advantages, few empirical studies examine whether being an early mover in certain organizational practices materially affects performance. In the retrospective on and update of their original paper on first-mover advantages, Lieberman and Montgomery (1998) encourage more empirical research to identify the linkages between the resource-based view of the firm, first-mover advantages, and firm performance.First-mover advantages may be significant in industry acquisition waves. Acquisitions provide firms with a means to obtain valuable resources more quickly than is possible via internal capital expenditures (Finkelstein, 1997;Pfeffer, 1972). In light of the serious concerns that have been raised regarding the success of acquisitions in both practitioner and academic outlets (Business determination of factors that influence acquisition success remains an important research question.This study investigates whether being an early mover in the acquisition process affects shareholder returns. Specifically, we compare the stock market reactions to early-mover acquisitions (i.e.,

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The banking industry and the Comptroller of the Currency won three Supreme Court rulings allowing banks to sell annuities and other insurance products. Overall, bank stock prices have not changed significantly surrounding these rulings. However, these rulings significantly decreased insurance company stock prices. Life and health insurance companies and insurance agencies have the most negative reactions. Property-liability insurance companies have a less negative response. Insurance companies that sell via a brokerage system have the highest stock returns. The results are consistent with contestable market theory. Decreasing entry barriers reduces the economic rents of insurance companies and changes the competitive structure among insurance companies.

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