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

  • Son Ekabiakto MercuBuana University, Jakarta
  • BambangMulyana MercuBuana University, Jakarta
Keywords: Merger or Acquisition, Financial Performance, Company Value, Paired Sample T-Test

Abstract

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.

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Published
2018-11-30
How to Cite
Ekabiakto, S., & BambangMulyana. (2018). FINANCIAL PERFORMANCE AND CORPORATE VALUE POST MERGER AND ACQUISITION (STUDY ON MANUFACTURING INDUSTRY ISSUER IN INDONESIA) . International Journal of Engineering Technologies and Management Research, 5(11), 25-33. https://doi.org/10.29121/ijetmr.v5.i11.2018.314