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ANALYSIS OF MERGER AND ACQUISITION IMPACTS TOWARD FINANCIAL PERFORMANCE, MARKET PERFORMANCE, STOCK RETURN, AND STOCK RISK OF INDONESIAN NON-FINANCIAL PUBLICLY LISTED COMPANIES IN 2011-2015
Azuura Salsabila, H M Roy Sembel

Sekolah Tinggi Manajemen IPMI


Abstract

The increase in total of Indonesia-s start-up business is an impact from the globalization in technology. Therefore, many companies are trying to expand their geographic reach and growth to survive in the competition. It is found that there are many cases that the growth happens through M&A to realize the synergy. However, not all merger and acquisition are success. Financial performance, market performance, stock return, and stock risk can be the measurement whether M&A gives any impacts or not. With those measurements as the variables, paired sample T-Test, wilcoxon-s signed rank test, and F-Test for two variances will be used as the hypothesis testing and will be assess for 3 years, 1 year, 5 days before and after the event. This research finds that M&A only gives difference in the companies- ROE, ROA, total asset turnover both in 3 and 1 year before and after and P/BV in 1 year before and after the event. From those findings, this research recommends the companies to consider the strategy in managing larger base of capital and fix asset before conducting M&A and also consider about DER and DAR that keep on increasing with the decreasing in total asset turnover. And for the investors, P/E and P/BV can be the indicator for the companies- future growth and consideration in investing and for those investors who are risk averse, it is better to invest after the M&A happened since this research finds that the stock risk is tend to be riskier before the M&A.

Keywords: Merger, Acquisition, Financial Performance, Market Performance, Stock Return, Stock Risk

Topic: Financial Accounting

Link: https://ifory.id/abstract/VBkKZd2Rpbth

Conference: Annual International Conference on Accounting Research (AICAR 2019)

Plain Format | Corresponding Author (Azuura Salsabila)

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