Comparative Analysis of Financial Performance Before and After Acquisition
A Study in Acquiring Company Listed in Indonesian Stock Exchange, Period of 2012-2018
- https://doi.org/10.2991/aebmr.k.210416.023How to use a DOI?
- Financial Performance, Acquisition, Financial Ratio
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.
- © 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 -