Comparative Analysis of Pra-Post Merger and Acquisition Financial Performance Reviewed From EVA, MVA and Financial Ratio Methods (Empirical Study of Non-Financial Sector Companies Listed on the IDX for the Period 2015-2020)
Journal Title: International Journal of Current Science Research and Review - Year 2024, Vol 7, Issue 07
Abstract
This study aims to compare the pre-post M&A financial performance of non-financial companies listed on the Indonesia Stock Exchange (IDX) in the 2-year period before mergers and acquisitions (M&A), in the year of M&A, and 2 years after M&A. Performance was measured using Economic Value Added (EVA), Market Value Added (MVA), and financial ratios. The research sample consisted of 22 companies selected by purposive sampling, and secondary data were analyzed from financial statements. Partial analysis was conducted with the Wilcoxon Sign Test because the data was not normally distributed, while simultaneous analysis used the MANOVA test with the STATA version 17 application. The results of simultaneous testing showed no significant difference in financial performance between before and after M&A. However, partial test results found significant differences in MVA variables in the period 2 years before, 1 and 2 years after M&A, as well as in the year of M&A. In addition, the ROA variable also shows significant differences in the 2-year period before, 1 and 2 years after M&A. However, the effect of M&A on MVA and ROA variables tends to be negative.
Authors and Affiliations
Eunike Rosni Bohalima, Erlina . , Firman Syarif,
Keywords
Related Articles
- EP ID EP740362
- DOI 10.47191/ijcsrr/V7-i7-40
- Views 42
- Downloads 1
Implementation of Strategic Management in Building Student Character in Education Institutions in Indonesia
The purpose of this research is to find out and analyze strategic management in realizing student character how student character is manifested and what are the obstacles and solutions in realizing student character. The...
The Impact of Kahoot! And Quizizz to Teach English Tenses for Flyers
Mastering English tenses is crucial for A2 Flyers students, enabling them to expand their language proficiency and excel in English examinations such as the Cambridge test. However, many schools and centers solely rely o...
PLEASE Strategy Based on Product Approach (PSBPA) to Enhance Students’ Achievement in Writing Descriptive Text
Modifying a couple of method can cover their weaknesses each other. This current research aims to intently find out if there is a significant improvement in students’ writing achievement after the students are taught thr...
Analysis of Digital Transformation on Consumer Behavior for Shopping in Offline and Online Store (Case Study: UNIQLO Indonesia)
Uniqlo is one of the world’s largest Apparel Fashion firms. Uniqlo’s business strategy integrates the entire clothing-making process, from planning and design to production, distribution, and retail. Uniqlo expanded its...
Discovery Learning: Learning Modules to Improve the Critical Thinking Skills of Grade IV Elementary School Students
This research aims to develop discovery-based learning modules on Natural Sciences and Social Sciences (IPAS) subjects in elementary schools. Research and development uses the Brog and Gall (2003) model which consists of...