Journal of Finance and Investment Analysis

Exploring Independent Factors Influencing Investment Efficiency of Asset Acquirers in Pakistan: Evidence from Mixed Methods

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• Abstract

   

  This study aims to empirically assess how independent factors influence the acquirer's investment efficiency in Pakistan. This study used primary data gathered through the survey method from 584 respondents. The secondary data was collected from yearly reports of 300 selected Pakistani companies from 1991 to 2023. The study has chosen 1000 samples of asset acquisitions, 550 purchases have several business units and 450 have individual segments. Multivariate regression analysis and econometric modeling were used to estimate data outcomes. The study findings emphasize that independent factors directly relate to subjectivity, objectivity and rationality of corporate players, which strongly influence the acquirer's return. In unfavorable circumstances, the independent attributes adversely influence the performance of firms and the return on the asset buyer's investment. Findings further revealed that the majority of acquirers rely on personal expertise, mental accounting, social interactions and recommendations instead of emphasizing the existing market dynamics. This study's outcomes have practical implications and expand the theory that behavioral biases, social pressure, financial awareness, decisional biases, political risk, economic and environmental characteristics have mixed effects on the asset buyer's investment efficiency.

   

  Keywords: Independent factors, Acquirers return, Value maximization, Investment efficiency, Asset acquisitions.