DEBT RESTRUCTURING IN INDONESIA: MERGER AND ACQUISITION PERSPECTIVE

ANGELINA, IRENE and SUTJIONO, GABRIELLA LAVENIA and KHONRAD, IRENE CITRAWATI and Linawati, Nanik (2023) DEBT RESTRUCTURING IN INDONESIA: MERGER AND ACQUISITION PERSPECTIVE. In: International Conference on Economy, Management, and Business (IC-EMBus), 23-11-2023 - 23-11-2023, Bangkalan - Indonesia.

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Abstract

The number of companies undergoing debt restructuring in Indonesia has significantly increased each year. Debt restructuring, as an alternative to mergers and acquisitions, has become a strategy for many companies facing financial challenges, especially in the credit sector. The purpose of this research is to conduct an in-depth examination of debt restructuring in Indonesian companies during the period 2003 - 2022. This study utilizes a method involving the analysis of pre-test and post-test financial performance ratios of companies after debt restructuring. The main financial ratios focused on in this research are liquidity ratio, solvency ratio, profitability ratio, and efficiency ratio. The data period used for the study includes two years before (t-2) and two years after (t+2) the occurrence of debt restructuring. The study involves 44 samples of companies in Indonesia that underwent debt restructuring during the years 2003 - 2022, processed through SPSS statistical analysis. Based on the ratio calculations, this research concludes that debt restructuring has caused significant differences in the Cash Ratio, Debt to Asset Ratio, Profit Margin, Return to Asset, Return to Equity, and Asset Turnover.

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