The Financial Performance Comparison of Acquired Companies in Indonesia

SYAH, ANGELIQUE REGINA and CHRISWANTO, EVELYN JENNIS and Linawati, Nanik (2023) The Financial Performance Comparison of Acquired Companies 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

The aim of this study is to examine the impact of mergers and acquisitions on the financial performance of acquiring companies in Indonesia. The research was conducted on one hundred acquiring companies that were listed on the Indonesia Stock Exchange during the period from 2015 to 2020. A comparison was made between the financial ratios two years before and two years after mergers and acquisitions occurred. The variables tested are the average differences between the two years before and two years after mergers and acquisitions in financial ratios, including Return on Assets, Return on Equity, Earnings per Share, and Net Profit Margin. The sampling technique used was convenience sampling. The data analysis method in this research involves the use of descriptive statistical models and paired-sample t-tests using the statistical software SPSS. The results of this research indicate that there is an average difference in financial performance in the variables of Return on Assets and Net Profit Margin two years before and two years after mergers and acquisitions.

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