Proceedings of the 7th Regional Accounting Conference (KRA 2020)

Comparative Analysis of Financial Performance Before and After Acquisition

A Study in Acquiring Company Listed in Indonesian Stock Exchange, Period of 2012-2018

Authors
Ilham Yunus, La Ode Rasuli, Amir Lukum
Corresponding Author
Ilham Yunus
Available Online 19 April 2021.
DOI
https://doi.org/10.2991/aebmr.k.210416.023How to use a DOI?
Keywords
Financial Performance, Acquisition, Financial Ratio
Abstract

The present study delves to analyze the difference of company financial performance prior to and after acquisition in companies listed in the Indonesian Stock Exchange. The financial performance is measured by involving seven financial ratios: current ratio (CR), total asset turnover ratio (TATO), debt to equity ratio (DER), net profit margin (NPM), return on assets (ROA), return on equity (ROE), and earning per share (EPS). The comparative quantitative study involved the population of seven companies listed in the Indonesian Stock Exchange that conducted acquisition activity during the period of 2012-2018. From the population, five companies were acquired as the samples by purposive sampling technique. The study employed normality data test and Wilcoxon signed rank test as the data analysis techniques. The results showed that four financial ratios, i.e., current ratio (CR), debt to equity ratio (DER), net profit margin (NPM), and earning per share (EPS) are not significantly different prior to and after the acquisition. On the other hand, the ratios of total asset turnover ratio (TATO), return on assets (ROA) dan return on equity (ROE) yield negative significant result before and after acquisition. Therefore, the paper concludes that acquisition impacts negatively to the company financial performance.

Copyright
© 2021, 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 7th Regional Accounting Conference (KRA 2020)
Series
Advances in Economics, Business and Management Research
Publication Date
19 April 2021
ISBN
978-94-6239-366-0
ISSN
2352-5428
DOI
https://doi.org/10.2991/aebmr.k.210416.023How to use a DOI?
Copyright
© 2021, 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

TY  - CONF
AU  - Ilham Yunus
AU  - La Ode Rasuli
AU  - Amir Lukum
PY  - 2021
DA  - 2021/04/19
TI  - Comparative Analysis of Financial Performance Before and After Acquisition
BT  - Proceedings of the 7th Regional Accounting Conference (KRA 2020)
PB  - Atlantis Press
SP  - 175
EP  - 186
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.210416.023
DO  - https://doi.org/10.2991/aebmr.k.210416.023
ID  - Yunus2021
ER  -