Samosir, Jhovancka Basa (2021) Determinant of relative performance before and after the acquisition for the acquiring company of non-financial companies listed in Indonesia stock exchange period 2013-2017. Undergraduate thesis, IPMI Business School.

Text (Thesis BBA) Determinant of relative performance before and after the acquisition for the acquiring company of non financial companies listed in indonesia stock exchange periode 2013-2017 - Jhovancka Basa Samosir.pdf Restricted to Registered users only Download (5MB)

Abstract

Mergers and acquisirions had the potential to bring a good impact and success for the company. However, it found that in many cases not all companies who conducted M&A are successful, sometimes they fail when taking those actions. To assess whether the company's performance is improved or not (successful/failed) when doing the acquisition, this study aims to analyze whether the acquisition gives any improvements or difference to the financial performance, firm value, and stock performance of the non-financial companies listed on IDX during 2013-2017. Financial performance is measured by net profit margin (NPM), return on asset (ROA), current ratio (CR), quick ratio (QR), debt to equity ratio (DER), debt to asset ratio (DAR), total asset turnover (TATO) and fixed asset turnover (FATO). Firm value is measured by tobin's Q ratio and stock performance is measured by abnormal return (market adjusted return). Observation period for financial performance and firm value is 3 years (long-term period) and i year (short-term period) before and after the event, while stock is 5 days before and after the event. This research is a comparative quantitative research with the population of all non-financial companies listed in IDX that conducted acquisition. The sample was 35 companies which were determined by purposive sampling technique. This study uses IBM SPSS statistics 25 and Microsoft excel in processing data. Data analysis methods used in this study include descriptive statistics, normality test, and hypothesis testing. If the data is normally distributed, the hypothesis used is the pairedsample t-test, but if the data is not normally distributed, the hypothesis test used is the wilcoxon signed ranks test. The results of hypothesis testing show that there are no improvements or differences in the companies' NPM, CR,QR, DER, DAR, TATO, FATO, Firm value, and stock performance for 3 years and 1 year after the acquisition. However, ROA shows an improvement for 3 years and 1 year after the event. For the implication, this study theoretically enrich the students' knowledge about the effect of acquisition on the companies' financial performance, firm value and stock performance; an useful input or new knowledge for the lecture and other researchers who are use same topic like this research, while practically this study is expected to be an indicator of the companies' future growth and assist the investors to have a lower risk.

Item Type:	Thesis (Undergraduate)
Subjects:	H Social Sciences > H Social Sciences (General) H Social Sciences > HD Industries. Land use. Labor > HD61 Risk Management
Divisions:	Thesis > Bachelor of Business Administration
Depositing User:	Dede Faujiah
Date Deposited:	23 Dec 2021 08:03
Last Modified:	23 Dec 2021 08:03
URI:	http://repository.ipmi.ac.id/id/eprint/1344

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