Comments:

The authors need to cite relevant papers while building arguments. See for example, last two lines on
page 10. Numbers are mentioned without providing the sources.

In table 1, summary statistics of variables are given. However, the authors did not explain table 1 in the
text. It is recommended to provide some commentary on theses numbers. What they mean? What is
the distribution of the variables? In addition, it is also recommended to provide the correlation table to
check the multicollinearity issue. As it is assumed that there may exist multicollinearity in some of the
independent variables.

On page 11, fixed effect panel data model is stated. Please use proper subscripts to represent time and
cross-sections. In addition, also add a variable that represents the merger dummy in the model.

Why is there need to run separate models for small-medium scale enterprises and large-scale
enterprises? A simple dummy can be used to segregate the impact of both groups.

In the same model, why is there need to include squared total assets? No explanation is provided.
Moreover, the squared total assets coefficients are statistically insignificant? Is there need to include the
squared total assets?

The dependent variable is cash holdings in the equation is unclear? Few variables in the right side are in
scaled from. Are these cash holdings scaled by any variable? If not, then provide valid reason for not
scaling the cash holdings?

There might exist potential endogeneity issue in the model. It is recommended to check for the
presence of endogeneity. If there is endogeneity, then it is recommended to use GMM or 2SLS
techniques.

In table 3, most of the coefficients are insignificant. However, the R-Square values are so high. What is
the reason for high R-Square as in panel data the R-Square values are normally not that high?
Furthermore, it is also recommended to report Adjusted R-Square instead of simple R-Square.