| Summary: | Competition is increasingly tight business world that requires companies to
always innovate and develop corporate strategy. One way is by expanding the form
of acquisition. Company after the acquisition is expected to be more valuable if it
was led by a new management team or it could be regarded as management
replacement. This is done by PT Bank Danamon, Tbk that acquired PT Adira
Multidinamika Finance, Tbk in 2004.
There are three approaches to the analysis conducted to measure
performance and corporate governance after the acquisition, the stock price analysis
with total returns, analysis of operational performance with the cash flow
return, and governance analysis using the model in accordance with Bank Indonesia
Circular Letter Number: 9 / 12 / DPNP dated May 30, 2007. The period considered
is between the years 1999-2009 but excluded the period of acquisition, the year
2004.
The results showed that performance declined, both in terms of share price
performance and operational performance. However, in corporate governance after
the acquisition is followed by management replacement showed no increase in the
predicate of being good is good enough.
|
|---|