This study considers the financial characteristics of the firms involved in a merger to determine if the acquiring firm purchases a firm with financial characteristics that are complementary to those financial characteristics of the acquiring firm. A sample of fifteen mergers during the 1978-1982 time period was tested on eleven financial characteristics by using a paired difference experiment and at-test. statistic. Of the eleven financial characteristics studied, four were found to be significant. These results lead to the conclusion that firms do consider the criteria of complementary financial characteristics in evaluating potential acquisitions.Business Administratio
