The Financial Performance of Acquired Firms on Energy and Consumer Sectors in Indonesia

BUDIONO, CHRISTOPHER BRADLEY and PRAYOGO, NATHANIA CHERRYL and HAPSARI, RACHEL CINTANTYA and Linawati, Nanik (2023) The Financial Performance of Acquired Firms on Energy and Consumer Sectors in Indonesia. In: International Conference on Economy, Management, and Business (IC-EMBus), 23-11-2023 - 23-11-2023, Bangkalan - Indonesia.

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Abstract

This research aims to examine the differences in the average financial performance one year before and one year after mergers and acquisitions in publicly traded companies listed on the Indonesia Stock Exchange, particularly in the energy and consumer sectors. The sample size used consists of 20 companies in the energy sector, 20 companies in the consumer sector, and 44 companies in other sectors that went through mergers and acquisitions within the period of 2016 to 2020. Data processing was carried out using a Paired Sample T-Test with the assistance of SPSS version 26. The research results indicate that there is an increase in the market prospect ratio, leverage ratio, and efficiency ratio one year after mergers and acquisitions for acquiring companies in the energy and consumer goods sectors. Meanwhile, there is a decrease in the profitability ratio and liquidity ratio one year after mergers and acquisitions for acquiring companies in the energy and consumer goods sectors. This confirms that mergers and acquisitions contribute to the differences in the financial performance of acquiring companies in the energy and consumer goods sectors in Indonesia

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