| dc.description.abstract | Ethik Nafisa (2005). The Impact of M&A to the Company's Financial Performance in
Indonesia, a Case Study on Manufacturing Companies Listed in JSE. Yogyakarta:
Department of Accounting, international program, Faculty of Economics. UII.
In the tight business competition, company is claimed to develop its strategy to
maintain their existences, or to evolve and improve its performance. Hence, the strategy
is to do expansion whether it is internal or external expansion. The business combination
in the form of M&A is an external expansion that often implement by business entity.
Many researches have been conduct to investigate the impact ofM&A to the company's
financial performance, but the result is not always consistent. Some researcher found
positive impact but the other research found negative result. This research is aimed at
knowing whether the M&A has significant influence or not to the company's financial
performance. The problem of this research is: "how is the impact of M&A to the
company's financial performance before and after M&A?"
The sample of this research is all manufacturing companies that listed in JSE
which implement M&A during January 1996-April 1998, counted 9 companies.
In focusing the problem, this research is limited only the impact of M&A to the
financial performance of manufacturing companies. Company's performance in this
research use financial ratios analysis in the form of scores that stated in the Minister
decree No. KEP. 100/MBU/2002 dated on June 04th, 2002, about the Evaluationof Health
Level of State Owned Enterprise. The ratiosused includedprofitability, liquidity, activity,
and solvability ratios. Further, those ratios will test by non parametric statistic using the
wilcoxon signed rank test to test the difference of partial and summary variables before
and after M&A.
The result of analysisshowed that there is no significant difference in company's
financial performance score before and after M&A. Although there were some ratios that
is ROI, Current ratio and TATO which indicates a significant difference in the period
before and after M&A, but it was temporarily and inconsistent result.
From the analysis, it can be conclude that M&A do not brings any significant
difference in manufacturing company's financial performance. This matter is probably
because there is window dressing actions ofthe bidder company's financial statement for
the years before M&A, with the intention to display the company's power look better so
that it will attract the target company. On the contrary, the M&Adecisions supported by
the motivation to safe the target company from the bankruptcy threat, where in that time
have poor financial condition. Or probably because of the monetary crisis that happen in
the middle of 1997.
This research have many limitations, they are: (1) there is a limitations in getting
the data used in this research; (2) this research do not distinguish the types of M&A
whether it is horizontal, vertical, or conglomerate; (3) in analyzing the company's
performance, the researcher only concern with the financial aspect meanwhile there are
some factors outside the financial aspect influencing the company's performance. In the
further research, suggested that those limitations above can be eliminate by extending the
variable and also included the non financial aspect, tested with a larger sample so that
gained a better result. | en_US |
