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Journal : Journal of Accounting and Finance Management (JAFM)

Financial Performance Comparison Pre and Post-Acquisition of Indonesian Stock Exchange Companies Loura, Berlia; Heniwati, Elok; Kurniawan, Rudy
Journal of Accounting and Finance Management Vol. 5 No. 3 (2024): Journal of Accounting and Finance Management (July - August 2024)
Publisher : DINASTI RESEARCH

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.38035/jafm.v5i3.621

Abstract

The business landscape in Indonesia is experiencing heightened competition compared to previous periods. Companies must devise robust strategies to mitigate potential downturns caused by various factors. One viable strategy is acquisitions. However, acquisitions can fail if not meticulously planned and executed. This study analyzes financial performance before and after acquisitions using financial ratios such as Current Ratio (CR), Total Assets Turnover (TATO), Return on Equity (ROE), and Debt to Equity Ratio (DER). The observation period covers two years before and three years after the acquisition (t-2 and t+3). We will compare the financial performance of companies listed on the Indonesia Stock Exchange (IDX) that have undergone acquisitions. The research adopts a comparative approach with a quantitative methodology. The study population consists of fifteen companies listed on the IDX that completed acquisitions between 2018 and 2019. Evaluations are conducted using the Wilcoxon Sign Rank Test and Paired Sample T Test. Although the study found no significant changes in financial performance before and after acquisitions during the observation period, the CR ratio at t+3 compared to t-1 and the DER ratio at t+1 compared to t-1 showed significant differences.
Co-Authors ., Rusliyawati Abdul Gofur Adam, Ryan ADLIN, ADLIN Adyas, Dasmansyah Agung Wardana Agus Hartoko Alfian Pradana, Johan Anang Siswanto, Anang Anastasia, Vivian Andika Andika Andries Lionardo, Andries Andy Alfatih Angelina, Natalia Angeline, Velicia Ardhi, Qisthi Ardimansyah Ardimansyah Asmar Asmar Asmar, Asmar Aswat, Ibnu Azkiya, Satria Tsani Azmi, Ika Nur BE, Marsum Budianto, Tri Hendrawan Bugis, Riki Cahya, Fuji Anggun Cahya Candy, Gandhes Tri Damayanti, Fera Darmayanti, Tessa Eka Darmini Darmini Dedy Syah Putra, Dedy Syah Dewi Sartika, Diana Elishang, Rachelle Elok Heniwati Emilya Ully Artha Euis Eti Rohaeti Fabiola, Rivanka Wana Hamiru, Hamiru Hapsari Ekonugraheni, Dyah Haryono Haryono Hayati Hehamahua Hermansyah Hermansyah Hijriah, Amanah Ikhsan, Syarbini Isnaini, Inayah Jozua Sabandar Khasanah, Magnalia Restu Kristianty, Cesilia Monika Loura, Berlia Malik, Sofian Masyitoh, Maulida Mery Yanti Mugiawati, Wawat Muhamad Chairul Basrun Umanailo MUHAMMAD FAHMI Muhsin Muhsin N M Haristanti, Sindy Nabila, Helmi Ilham Nawawi, Mansyur Ni Luh Putu Hariastuti NurAzmi, Ika Nurdin, Irfan Taufik Nurhasan Nurhasan, Nurhasan Putri Priyana, Ancella Rafa, Wukuf Dilvan Rafles Ginting Ramadanti, Indah Ravik Karsidi Retna Mahriani Rika Favoria Gusa Rohyana, Ripki Rowi, Saiful Sapitri, Maisa Sapja Anantanyu, Sapja Sari Rusmita Sharini, Putri Ayu Siti Helmyati Siti Masrochah Sugihardjo Sugihardjo Sumarno Syafrudin Syafrudin Syarifah Varbi S, Vieronica Veithzal Rivai Zainal Venus Khatta Salsabila Vieronica Varbi Sununianti, Vieronica Varbi Vitriyan Espa Wahri Sunanda Wahyu Hidayat Wibowo, Fahrudin Mukti Yandi, Welly Yantiana, Nella Yeti Kartikasari, Yeti Yusnaini Yusnaini Yusuf, Salma