Proceedings of the International Conference of Ethics on Business, Economics, and Social Science (ICEBESS 2018)

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Synergy Value from Bank Consolidations in Indonesia

Authors
Uke Pitaloka Antariksaningruma, Uke Pitaloka Antariksaningrum, Willem Makaliwea
Corresponding Author
Uke Pitaloka Antariksaningruma
Available Online April 2019.
DOI
10.2991/icebess-18.2019.10How to use a DOI?
Keywords
bank, consolidation, synergy value, financial performance
Abstract

Developing nations witnessed tremendous numbers of domestic bank mergers and acquisitions (M&As) and foreign acquisitions in response to deregulation, technological advances, and the globalization of nonfinancial economic activity. These changes in the corporate governance of banks raise essential questions about how these changes create value that can affect bank performance and are the changes permanent or do they tend to return to their previous conditions. This research aims to assess the synergy value created from change of ownership and its effect toward bank’s performance shown in their relative performance as well as their standard financial ratios. Data in this research is taken from 37 observations of banks that operated in Indonesia at 2011 – 2016, and then the observations will be analyzed using panel data analysis. Consistent with the previous research, the result of this study shows that there is synergy value created from the consolidations that affects bank performance. Both domestic and foreign acquisitions affect positively in bank performance. While domestic acquisition show improvement in profitability, the foreign acquisition show improvement in asset quality and efficiency.

Copyright
© 2019, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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Volume Title
Proceedings of the International Conference of Ethics on Business, Economics, and Social Science (ICEBESS 2018)
Series
Advances in Social Science, Education and Humanities Research
Publication Date
April 2019
ISBN
10.2991/icebess-18.2019.10
ISSN
2352-5398
DOI
10.2991/icebess-18.2019.10How to use a DOI?
Copyright
© 2019, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

risenwbib
TY  - CONF
AU  - Uke Pitaloka Antariksaningruma
AU  - Uke Pitaloka Antariksaningrum
AU  - Willem Makaliwea
PY  - 2019/04
DA  - 2019/04
TI  - Synergy Value from Bank Consolidations in Indonesia
BT  - Proceedings of the International Conference of Ethics on Business, Economics, and Social Science (ICEBESS 2018)
PB  - Atlantis Press
SP  - 59
EP  - 62
SN  - 2352-5398
UR  - https://doi.org/10.2991/icebess-18.2019.10
DO  - 10.2991/icebess-18.2019.10
ID  - Antariksaningruma2019/04
ER  -