Comparative Analysis of Financial Performance Before and After Acquisition

Abstract

This study aims to analyze the differences in the company's financial performance between before and after being acquired based on financial ratios. This research was conducted at acquired companies listed on the Indonesia Stock Exchange for the period 2013-2017. The population of this study was 559 companies. The sampling method used was non-probability sampling method with a purposive sampling approach. The sample obtained was 5 companies. The method of collecting data used was the non-participant observation method. The data analysis technique used paired sample t test (paired sample T-test) and Wilcoxon signed ranks test. Based on the analysis, it is found that financial performance is measured by current ratio (CR), total debt to total assets (DAR), long term debt to equity (DER), return on total assets (ROA), return on equity (ROE), net profit margin (NPM), total assets turnover (TATO), and earnings per share (EPS) found no significant differences before and after the acquisition. The economic motive of the company cannot be achieved, but the motives that are thought to underlie the acquisition are non-economic motives and diversification. This research is expected to contribute to investors and company management in taking action to expand the company.