| Summary: | Mergers and Acquisitions (M&As) is company�s strategy to grow and
expand through outside of organization (external growth), called as an-organic
growth. This strategy is intended to improve the performance of the company in a
relatively short time. Through M & A activities, the company hopes to create
synergies in order to obtain economies of scale and economies of scope in order
to have a competitive advantage and leadership in the market, by having a market
leadership, cost leadership and focused. However, many M&A results did not
provide financial benefit as company�s expected.
The purpose of this study is to analyze the difference of company's
performance after M&A compared before the M&A. The performance of company
is measured by financial ratios (liquidity, solvency, asset management,
profitability, market value) and stock returns. Companies analyzed in this study
are manufacturing firms that conduct M&A in the year 2005 - 2008 and listed in
capital markets of the Indonesian Stock Exchange (IDX), Singapore Stock
Exchange (SGX) and the Stock Exchange of Thailand (SET). The Method of data
sampling used in this study is purposive sampling. This study analyzed period
performance of the company using 3 years before and 3 years after M&A.
Analysis hypothesis using in this study is quantitative analysis consists of
descriptive statistics analysis, Kolmogorov-Smirnov normality test and nonparametric
Wilcoxon Signed Rank Test.
This study finds there is a significant difference to the financial ratios
Current Ratio (CR), Quick Ratio (QR), Debt to Asset Ratio (DAR), Debt Equity
Ratio (DER), Fixed Assed Turnover Ratio (FATO) and Operating Profit Margin
(OPM) and abnormal stock returns. Positive significant difference occurred in
QR and OPM, while significant negative occurred in CR, DAR, DER, FATO and
abnormal stock returns. Meanwhile, it finds no significant difference of Total
Asset Turnover ratio (TATO), Net Profit Margin (NPM), Return on Assets (ROA),
Return on Equity (ROE), Earnings per Share (EPS) and Price Earnings ratio
(PER).
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