LAUSR

In this paper, we empirically examine the impact of mergers on corporate financial performance in Pakistan using data on the deals occurred during the period 1995–2012. Ordinary least squares (OLS) and empirical Bayesian estimation methods are applied to carry out empirical analysis. The OLS regression results suggest that the merger deals do not have any significant impact on the profitability, liquidity, and leverage position of the firms. However, the estimates indicate that the merger deals have a negative and statistically significant impact on quick ratio of merged/acquirer firms. We show that the results of the empirical Bayesian method are largely consistent with the OLS results.