Comparison of financial performance and firm value before and after mergers and acquisitions of non-financial companies in Indonesia

Jubaedah Nawir, Kevin Christoper, Himawan Rahardika, Rida Anisa Permata and Helena Olivia Yosih N
Additional contact information
Jubaedah Nawir: Faculty of Economics and Business, Universitas Pembangunan Nasional Veteran Jakarta, Pondok Labu, 12450, Jakarta, Indonesia
Kevin Christoper: Faculty of Economics and Business, Universitas Pembangunan Nasional Veteran Jakarta, Pondok Labu, 12450, Jakarta, Indonesia
Himawan Rahardika: Faculty of Economics and Business, Universitas Pembangunan Nasional Veteran Jakarta, Pondok Labu, 12450, Jakarta, Indonesia
Rida Anisa Permata: Faculty of Economics and Business, Universitas Pembangunan Nasional Veteran Jakarta, Pondok Labu, 12450, Jakarta, Indonesia
Helena Olivia Yosih N: Faculty of Economics and Business, Universitas Pembangunan Nasional Veteran Jakarta, Pondok Labu, 12450, Jakarta, Indonesia

International Journal of Research in Business and Social Science (2147-4478), 2023, vol. 12, issue 3, 318-323

Abstract: This study was conducted to see whether there is a difference between mergers and acquisitions on financial performance and firm value or not. A total of 31 companies conducting mergers and acquisitions in 2016-2018 listed on the Indonesia Stock Exchange were sampled in this study. The occurrence of decline in profitability, liquidity, activity ratios and firm value as well as an increase in solvency ratios after mergers and acquisitions became the impetus for conducting research. The measuring tool of profitability is Net Profit Margin (NPM). The measuring tool of liquidity is the Current Ratio (CR). The measuring tool of Solvency is the Debt-to-Equity Ratio (DER). The measuring tool for the activity ratio is Total Asset Turnover Ratio (TATO). And the instrument for measuring the value of the company is the stock price. This study used the Wilcoxon-Signed Rank Test to test the hypothesis. The results showed that there was a difference in the Current Ratio (CR) after the merger and acquisition. However, mergers and acquisitions make no difference in Net Profit Margin (NPM), Total Asset Ratio (TATO), Debt-to-Equity Ratio (DER), and Firm value. Key Words:Mergers and Acquisitions, Financial Performance, Firm Value

Date: 2023
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.ssbfnet.com/ojs/index.php/ijrbs/article/view/2575/1787 (application/pdf)
https://doi.org/10.20525/ijrbs.v12i3.2575 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:rbs:ijbrss:v:12:y:2023:i:3:p:318-323

Access Statistics for this article

International Journal of Research in Business and Social Science (2147-4478) is currently edited by Prof.Dr.Umit Hacioglu

More articles in International Journal of Research in Business and Social Science (2147-4478) from Center for the Strategic Studies in Business and Finance Editorial Office,Baris Mah. Enver Adakan Cd. No: 5/8, Beylikduzu, Istanbul, Turkey. Contact information at EDIRC.
Bibliographic data for series maintained by Umit Hacioglu ().