COMPARATIVE STUDY OF FINANCIAL PERFORMANCE BEFORE AND AFTER ACQUISITION (original) (raw)

Comparison of financial performance and firm value before and after mergers and acquisitions of non-financial companies in Indonesia

International Journal of Research in Business and Social Science (2147- 4478)

This study was conducted to see whether there is a difference between mergers and acquisitions on financial performance and firm value or not. A total of 31 companies conducting mergers and acquisitions in 2016-2018 listed on the Indonesia Stock Exchange were sampled in this study. The occurrence of decline in profitability, liquidity, activity ratios and firm value as well as an increase in solvency ratios after mergers and acquisitions became the impetus for conducting research. The measuring tool of profitability is Net Profit Margin (NPM). The measuring tool of liquidity is the Current Ratio (CR). The measuring tool of Solvency is the Debt-to-Equity Ratio (DER). The measuring tool for the activity ratio is Total Asset Turnover Ratio (TATO). And the instrument for measuring the value of the company is the stock price. This study used the Wilcoxon-Signed Rank Test to test the hypothesis. The results showed that there was a difference in the Current Ratio (CR) after the merger and ...

The Comparative of Corporate Performance Analysis Between Pre and Post Mergers & Acquisitions Companies in the Indonesia Manufacturing Industries Listed on the Stock Exchange in 2007-2012

Jurnal Manajemen dan Bisnis Indonesia

This study aimstoanalyzethe performance ofcompanies doingmergersandacquisitionsthatproxies byReturn onCapitalEmployed(ROCE), Return on Equity(ROE), Operating Profit Margin(OPM), NetProfit Margin(NPM), EPS(Earnings PerShare),PER(Price Earning Ratio). This studyuses the sample based on 90 companies in Indonesia manufacturing industries forthe period from2007 to2012.Hypothesis testing is doneby using thepairedttest. We had documented the results ofthe study findings ofthe performance ofthe company which showed the distinction between two conditions, premergersandacquisitionswhen comparedwith postmergersandacquisitions of companies. However, many out of the results are notstatistically significant. Keywords: Mergers & Acquisitions; Corporate Performance; Financial Ratios.

FINANCIAL PERFORMANCE AND CORPORATE VALUE POST MERGER AND ACQUISITION (STUDY ON MANUFACTURING INDUSTRY ISSUER IN INDONESIA

International Journal of Engineering Technologies and Management Research, 2018

This study was aimed to analyze company financial performance before and after merger or acquisition. Financial performance was measured using Current Ratio (CR), Debt to Equity Ratio (DER), Total Assets Turnover (TATO), Inventory Turnover (ITO), Operating Profit Margin (OPM), Return on Assets (ROA), Return on Equity (ROE), while corporate value was measured using Price to Book Value (PBV). This study was limited to manufacturing industry issuers which had merged and acquisited between 2003 and 2011. Sample was collected using purposive sampling method and there were 11 companies. Data analysis was statistic parametric analysis using paired sample t-test. Study result found that CR, DER, TATO, ITO, OPM, ROA, ROE, and PBV after merger and acquisition was better than before merger and acquisition, even ROA and ROE showed significant improvement.

Comparative Effects of Mergers and Acquisitions on the Companies’ Financial Performance

Russian Journal of Agricultural and Socio-Economic Sciences, 2018

This study aims to determine the comparative financial performance of companies before and after mergers and acquisitions. Company performance is measured by using financial ratios, namely: current ratio, total asset turnover, debt to equity ratio and net profit margin. While the object of this study include eleven manufacturing companies listed on the Indonesia Stock Exchange (BEI) in the period of 2009-2013 that once conducted mergers and acquisitions. Data analysis method used is quantitative method, using SPSS 21 with the Kolmogorov-Smirnov normality test, Wilcoxon signed rank test and paired sample t-test. Paired sample t-test on CR and DER ratios differ two years and three years before and after merger acquisition and three years before and three years after mergers and acquisitions, while TATO is different two years before and three years after mergers and acquisitions. However, NPM did not differ in all observation periods.

Do Merger And Acquisition Affect On Company’s Financial Performance?

SRIWIJAYA INTERNATIONAL JOURNAL OF DYNAMIC ECONOMICS AND BUSINESS, 2018

This research aims to determine whether there are differences in the company's financial performance before and after merger and acquisition are conducted. The design of this researchis quantitative research. This research was conducted on the listing company in the Indonesian Stock Exchange 2010-2014. The data source was obtained from secondary data; the data obtained from the financial conditionments. The total final samples used were 24 companies by usingpurposive sampling method. The data used were analyzed using the Wilcoxon Signed Ranked Test. The results of this research indicate that current ratio (CR),debt to equity ratio (DER),net profit margin(NPM),price earnings ratio (PER), total asset turnover (TATO) had no significant difference on the company before and after merger and acquisitionon the listing company in the Indonesian Stock Exchange (merger and acquisitionof 2010-2014).

Company performance before and after a merger

Proceedings of the 16th International Symposium on Management (INSYMA 2019), 2019

This study aims to compare the financial performance of non-finance companies listed on the Indonesia Stock Exchange for the period 2010-2014 before and after a merger and acquisition. This study used the long-term pre and post-merger financial data to investigate the long-term performance. The present work conducted a comprehensive ratio analysis of 14 major ratios related to profitability, efficiency, leverage, and liquidity. The method used in testing the research was a quantitative approach with paired t-test and Wilcoxon test. The results of this study show that financial performance after the merger and acquisition (M&A) was better than before.

Mergers and Acquisitions: Their Impact on the Financial Performance on the Indonesian Banking Sector

Asian Journal of Economics, Business and Accounting, 2022

Aims: To comparing and analyzing banking that have completed mergers and acquisitions in Indonesia from 2005 to 2020. Study design: This research using the quantitative descriptive method. Place and Duration of Study: Financial Services Authority, period 2005 to 2020. Methodology: This research using quantitative data with secondary data sources whose data is obtained from financial reports that are accessed through the website www.ojk.go.id and www.idx.co.id. Data analysis used different tests using IBM SPSS, including Descriptive Statistics Test, Kolmogorov Smirnov One Sample Test, Wilcoxon Signed-Ranks Test, Paired Sample T-Test, and Multivariate Analysis of Variance (Manova). Results: The results in this study with Manova there are differences in financial performance before and after M&A. While the of the test with Wilcoxon Signed Ranks-Test and Paired Sample T-Test did not show significant differences in the ratios of CAR, DER, ROA, ROE, BOPO, FDR/LDR, and NPF/NPL before and a...

Comparative Analysis of Financial Performance Through Mergers by Health Service Companies in Indonesia

IJMRAP, 2023

In strengthening and developing itself, a company can employ a strategy namely business expansion. This expansion, particularly through the acquisition and merger of companies, is prevalent. PT Sejahteraraya Anugrahjaya (SRAJ), operating in the healthcare sector, merged with PT Bogor Medical Center (BMC). Therefore, it is necessary to analyze whether any differences or not in the financial performance of SRAJ following the merger. This research applies a comparative quantitative analysis method. The financial performance of the firm is measured using six financial ratios: ROA, ROE, FATO, TATO, DER, and CR. Financial data is obtained from annual reports from the mayapadahospotal.com and idx.co.id websites for 5 years beforehand the merger (2013-2017) and 5 years following the merger (2018-2022). All data are normally distributed according to the One-Sample Kolmogorov-Smirnov Test. However, the Paired Sample t-test result indicates that the TATO variable changes beforehand and following the merger with a significance value of 0.025. Meanwhile, the variables ROA, ROE, FATO, DER, and CR do not change between beforehand and following the merger. Thus, the merger conducted by PT Sejahteraraya Anugrahjaya Tbk (SRAJ) with PT Bogor Medical Center (BMC) has a less significant impact through the studied ratio indicators.

Indonesian Banking Performance of Pre and Post of Mergers and Acquisitions

TRIKONOMIKA

The objective of this study to analyse the performance of banks before and after conducting Mergers and Acquisitions (M&A) using a risk approach and how it affects the value of banking companies. Banking performance was analysed from three years before and three years after conducting mergers and acquisitions. To analyse the impact of banking mergers and acquisitions on company value, paired sample t-test and the fixed effect model (FEM) and Random Effect Model (REM) are utilised to test the research hypothesis. The results show that the banking performance after conducting M&A is decreased. This is demonstrated by the improvement in banking value and performance by using variables PBV, Tobin’s q, LDR and COMIN, which increase relatively after mergers and acquisitions, but the ability to generate profits, as measured by ROA is decreased.This is an implication of the combination of large assets that have not been used optimally to generate profits.

Does Acquisition Improve Indonesian Bank Financial Performance

IJBASS, 2020

The purpose of this study was to examine the differences in the financial performance of Indonesian banks before and after the acquisition during the period 2002-2017. There were 41 merger and acquisition transactions during this period conducted by foreign and domestic investors/banks. The analysis of this study was conducted on two groups, the first group is a sample of bank acquisitions conducted by foreign investors/banks, and the second group is a sample of bank acquisitions conducted by domestic investors/banks. Samples collected from 24 local private banks, which were acquisitions in the period 2002-2017. Data from annual reports and bank publications derived from the Financial Services Authority (OJK). Statistical Methods used in this study were descriptive statistics, t-test, and Wilcoxon Test. Empirical evidence has shown that in both sample groups, credit quality improved. However, in the sample group of cross-border acquisitions, there was also an improvement in management compliance with regulatory regulations where the minimum reserve requirement increased, while the capital adequacy ratio increased only for banks that were acquired by domestic investors/banks.