The Determinant of the Possibility of Merger in Indonesia

Devina Ivo Mahendra and Nadia Asandimitra Haryono
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Devina Ivo Mahendra: Faculty of Economics, Universitas Negeri Surabaya, Indonesia,
Nadia Asandimitra Haryono: Faculty of Economics, Universitas Negeri Surabaya, Indonesia,

International Journal of Economics and Financial Issues, 2017, vol. 7, issue 3, 62-68

Abstract: The company will not easily eliminated if they did right strategy, such as decided to do a corporate action instance expansion. The decision of the company doing the merger increased every year in the period 2010-2013 compared to other mutual policies, such as the rights issue and stock split. The purpose of this research was to analyze the influence of liquidity, leverage and profitability to the possibility of merging the companies listed on the stock exchange on the period. This research uses a quantitative approach with secondary data. Using 54 samples, consist of 27 companies that merged and do not merger which categorized using dummy variables. The results of hypothesis testing using a binary logistic regression analysis proves only that profitability that proxy by return on equity and leverage that proxy by debt to equity ratio affect the possibility of merger of the company.

Keywords: Merger; Profitability; Variable Dummy; Binary Logistic Regression (search for similar items in EconPapers)
JEL-codes: G01 G11 G14 G32 G34 (search for similar items in EconPapers)
Date: 2017
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