Divestiture and Company's Financial Performance: An Empirical Study on Companies Listed on Indonesia Stock Exchange

DOI

10.2991/icoi-19.2019.16How to use a DOI?

Keywords

Merger & Acquisition, Divestiture, non-parametric test, Wilcoxon Signed Rank test, financial ratio.

Abstract

In an uncertain business environment, most of the companies will do some actions to optimize their performance such as merger & acquisition, where this action commonly followed by divestiture. Previous studies have shown diverse impacts from divestiture. In this study, the sample used were companies listed in Indonesia Stock Exchange in 2009-2018 who did a divestiture action. A non-parametric Wilcoxon Signed Rank test was used in comparing companies’ financial ratio such as TATO, Cash Ratio, M/B Ratio, Net Profit Margin on Sales, ROA, ROE, and P/E Ratio. From this study, TATO, ROA, Net Profit Margin to Sales, and P/E Ratio from pre until post divestiture were different, but it weren’t for Cash Ratio, M/B Ratio and ROE.

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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TY  - CONF
AU  - Brigita Suganda
AU  - Sumani
PY  - 2019/10
DA  - 2019/10
TI  - Divestiture and Company's Financial Performance: An Empirical Study on Companies Listed on Indonesia Stock Exchange
BT  - Proceedings of the 2019 International Conference on Organizational Innovation (ICOI 2019)
PB  - Atlantis Press
SP  - 87
EP  - 91
SN  - 2352-5428
UR  - https://doi.org/10.2991/icoi-19.2019.16
DO  - 10.2991/icoi-19.2019.16
ID  - Suganda2019/10
ER  -