COMPARATIVE ANALYSIS OF COMPANY PERFORMANCE BEFORE AND AFTER MERGERS AND ACQUISITIONS IN COMPANY LISTED ON IDX 2018-2021
Article Sidebar
Main Article Content
Abstract
The purpose of this study is to examine how companies trading on the Indonesia Stock Exchange fared before and after M&A deals were made in the years 2018 through 2021. In this Study, we employed a comparable quantitative approach called "purposive sampling" to collect our data. There are seven suitable businesses to use as examples. Descriptive statistics, a normality test, and the Wilcoxon signed-rank test were employed to analyze the data. There was no discernible change in the financial performance of companies listed on the Indonesia Stock Exchange (IDX) before and after the announcement of mergers and acquisitions, as measured by three financial ratios: return on assets (ROA), return on equity (ROE), and debt to equity ratio (DER), for the period of 2018-2021. Several elements, according to the findings of this research, determine the ultimate fate of mergers and acquisitions. Investors should be aware that mergers and acquisitions do not always improve business efficiency.
Article Details
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
This journal provides immediate open access to its content on the principle that making research freely available to the public supports a greater global exchange of knowledge.
IJAEB by Graduate Program of Universitas Tarumanagara is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.. Permissions beyond the scope of this license may be available at https://journal.untar.ac.id/index.php/ijaeb
References
Graham, Kenny. (2020). Don’t Make This Common M&A Mistake. Harvard Business Review. Retrieved from http://www.hbr.org.
Galpin, T.J. (2021), "As another M&A wave begins: three keys to success,” Strategy & Leadership, Vol. 49 No. 2, pp. 14-21. https://doi.org/10.1108/SL-01-2021-0008
Syarifuddin. (2022). Financial Performance on Improving the Quality of Human Resources in Higher Education. Journal of Islamic Education Management, Vol. 06 No. 03: 841-854
Mashkour, Saoud. (2021). The Effect of Merger And Acquisition on Financial Performance of Companies In Iraq. Multicultural Education. 7. 203-212. 10.5281/zenodo.5676419
Firdaus, G. R., & Dara, S. R. (2020). Analisis Perbandingan Kinerja Keuangan Sebelum Dan Sesudah Melakukan Akuisisi Dan Merger Pada Perusahaan Non Keuangan. AKURASI: Jurnal Riset Akuntansi Dan Keuangan, 2(2), 63–74. https://doi.org/10. 36407/akurasi.v2i2.184
Bella, S., & Sari, F. (2021). Perbandingan Kinerja Keuangan Sebelum dan Sesudah Akuisisi pada Perusahaan yang Terdaftar di BEI. Improvement: Jurnal Manajemen Dan Bisnis, 1(2), 143–153.
Dinanti, A. P. M., Ubaidillah, M., & Novitasari, M. (2021). Analisis Perbandingan Kinerja Keuangan Sebelum dan Sesudah Merger dan Akuisisi (Studi Empiris pada Perusahaan yang melakukan Merger dan Akuisisi di tahun 2016). Seminar Inovasi Manajemen Bisnis Dan Akuntansi (SIMBA) 3. https://amp.kompas.com
Ali, K. (2020). Analisis Perbedaan Kinerja Keuangan Sebelum Dan Sesudah Merger Dan Akuisisi Pada Perusahaan Yang Terdaftar Di Bursa Efek Indonesia. Derivatif: Jurnal Manajemen, 14(2)
Arinta, Rey. (2019). Perbedaan Kinerja Keuangan Perusahaan Sebelum dan Sesudah Merger/Akuisisi yang Terdaftar di BEI, Universitas PGRI Yogyakarta.
Izzatika, D. N., Alwan Sri Kustono, & Nuha, G. A. (2020). Pengaruh Rasio Keuangan Sebelum dan Sesudah Merger dan Akuisisi terhadap Kinerja Keuangan pada Perusahaan yang Terdaftar di Bursa Efek Indonesia. Accounting Research Journal, 1(1), 1–16. Innovation and Technology Management, 13(3), 1–22. https://doi.org/10.1142/ S0219877016400010
Laiman, L., & Hatane, S. E. (2017). Analisis Dampak Merger dan Akuisisi Terhadap Kinerja Keuangan pada Perusahaan Non Keuangan Yang Terdaftar di Bursa Efek Indonesia Periode Tahun 2007-2014. Business Accounting Review, 5(2), 517–528.
Almurni, S., & Azhar, E. (2019). Comparative Analysis of Corporate Performance before and after the Merger (Empiric study on public companies). 73(Aicar 2018), 52–56. https://doi.org/10.2991/aicar-18.2019.12
Agustian, E. (2018). Analisis Kinerja Keuangan Industri Perbankan Yang Terdaftar Di Bursa Efek Indonesia Periode 2008-2012 (Studi Kasus Pada 4 Bank Sebelum dan Sesudah Merger Dan Akuisisi. Jurnal Manajemen Terpadu, 1(1).
Suprihatin, N. S. (2022). Komparasi Kinerja Keuangan Sebelum Dan Sesudah Merger Dan Akuisisi Pada Perusahaan Pengakuisisi Di BEI. JAK (Jurnal Akuntansi) Kajian Ilmiah Akuntansi, 9(1), 126–144. https://doi.org/10.30656/jak.v9i1.4038
Sumantri, F. A., & Agustiani, I. (2017). Kinerja Keuangan, Abnormal Return Sebelum Dan Setelah Pengumuman Merger. Agregat: Jurnal Ekonomi Dan Bisnis, 1(1), 73–93. https://doi.org/10.22236/agregat
Jallow, (M.S.), Masazing, (M.) &Basit, (A. (2017):” The effects of mergers & acquisitions on financial performance: a case study of UK companies, International Journal of Accounting & Business Management, Vol. 5 (No.1), April
Singh, S. S. (2018). Profitability of Mergers and Acquisitions: Evidence from India’s HighTech Industries. The Indian Economic Journal, 66(3–4), 223–249. https://doi.org/10.1177/0019466220934616
Gupta, I., Raman, T. V., & Tripathy, N. (2021). Impact of Merger and Acquisition on Financial Performance: Evidence from Construction and Real Estate Industry of India. FIIB Business Review.
Holtström, J. and Anderson, H. (2021), "Exploring and extending the synergy concept – a study of three acquisitions,” Journal of Business & Industrial Marketing, Vol. 36 No. 13, pp. 28-41. https://doi.org/10.1108/JBIM-09-2020-0420
Kharouf, H., Lund, D.J., Krallman, A. and Pullig, C. (2020), "A signaling theory approach to relationship recovery,” European Journal of Marketing, Vol. 54 No. 9, pp. 2139-2170. https://doi.org/10.1108/EJM-10-2019-0751
Febri, Yani & Dedi, Wibowo. (2021). Pengaruh Return On Asset dan Debt To Equity Ratio Terhadap Nilai Perusahaan Bank Syariah Sebelum Merger (Studi Kasus PT Bank BRI Syariah, Tbk Pada Bulan Januari-November 2020). Jurnal Ilmiah M-Progress. Vol. 11 No. 2
Shukla, A., Narayanasamy, S. and Krishnakumar, R. (2020), "Impact of board size on the accounting returns and the asset quality of Indian banks,” International Journal of Law and Management, Vol. 62 No. 4, pp. 297-313. https://doi.org/10.1108/IJLMA-12-2018-0271
Jamaluddin, J. (2022). The Effect of Capital Adequacy Ratio, Loan to Deposit Ratio and Return on Assets on Stock Prices At PT. Bank Central Asia Tbk Period 2011-2020. International Journal of Education, Information Technology, and Others, 5(2), 253-262. https://doi.org/10.5281/zenodo.6450220
Choiriyah, C., Fatimah, F., Agustina, S, & Ulfa, F. A. (2021). The effect of return on assets, return on equity, net profit margin, earning per share, and operating profit margin on stock prices of banking companies in the Indonesia Stock Exchange. International Journal of Finance Research, 2(1). 103-123. DOI: https://doi.org/10.47747/ijfr.v1i2.280
Irawan, Miranda; EDI, Edi. (2021). Analysis of the Effect of Mergers and Acquisıtions on Firm Performance and Earning Quality in Firms Listed on the IDX. Combines - Conference on Management, Business, Innovation, Education and Social Sciences, [S.l.], v. 1, n. 1, p. 963-975, mar. 2021. ISSN 2776-5644. Available at: <https://journal.uib.ac. id/index.php/combines/article/view/4527>. Date Accessed: 15 Oct. 2022.
Hutasoit, D. T. M., Toni, N., & Ariesa, Y. (2022). Effect of Loan to Deposit Ratio, Capital Adequacy Ratio, Return on Equity, and Dividend Payout Ratio on stock prices with Bank Indonesia Interest Rates as Moderating Variables in Banking Companies in Indonesia Stock Exchange. International Journal of Social and Management Studies, 3(3), 137–149. https://doi.org/10.5555/ijosmas.v3i3.207
Rani, Kurniasari. (2017). Analisis Return On Assets (ROA) dan Return On Equity Terhadap Rasio Permodalan (Capital Adequacy Ratio) Pada PT Bank Sinarmas Tbk. Jurnal Moneter Vol. IV No. 2. p-ISSN 2355-2700 e-ISSN 2550-0139
Akbar, J. (2021). Pengaruh Return On Assets Dan Return On Equity Terhadap Price To Book Value Pada Perusahaan Perbankan Yang Terdaftar Di Bursa Efek Indonesia. JEM Jurnal Ekonomi Dan Manajemen, 7(1), 59-68. Retrieved from https://journal.stiepertiba.ac.id/index.php/jem/article/view/109
Rahmawati, Y., & Hadian, H. N. (2022). The influence of Debt Equity Ratio (DER), Earning Per Share (EPS), and Price Earnings Ratio (PER) on the Stock Price. International Journal of Financial, Accounting, and Management, 3(4), 289–300. https://doi.org/10.35912/ijfam.v3i4.225
Rusdiyanto, Rusdiyanto and Hidayat, Widi and Tjaraka, Heru and Septiarini, Dina Fitrisia and Fayanni, Yenni and Utari, Woro and Waras, Waras and Indrawati, Mei and Susanto, Hadi and Tjahjo, Judy Djoko Wahjono and Mufarokhah, Nur and Susetyorini, Susetyorini and Elan, Umi and Samsi, Nur and Choiri, Choiri and Syamsul, Mohamad and Widodo, Muji and Suyanto, Hudi and Zainal. A, Muhammad and Imanawati, Zulaikhah. (2020). The Effect of Earning Per Share, Debt to Equity Ratio and Return on Assets on Stock Prices: Case Study Indonesian. Academy of Entrepreneurship Journal (AEJ), 26 (2): 2. pp. 1-10. ISSN 1528-2686
Hartati, L., Susianti, & Khoir, A. (2022). Pengaruh Current Ratio Dan Debt To Equity Ratio Terhadap Return On Assets (ROA) Industri Makanan Olahan Dan Minuman Terdaftar Di Bursa Efek Indonesia (BEI). Jurnal MoZaiK, 13(2), 54–66.