Mergers and Acquisitions: Their Impact on the Financial Performance on the Indonesian Banking Sector
Tari Kasumawati *
Faculty of Economics and Business, Lampung University, Lampung, Indonesia.
Tri Joko Prasetyo
Faculty of Economics and Business, Lampung University, Lampung, Indonesia.
Mega Metalia
Faculty of Economics and Business, Lampung University, Lampung, Indonesia.
*Author to whom correspondence should be addressed.
Abstract
Aims: To comparing and analyzing banking that have completed mergers and acquisitions in Indonesia from 2005 to 2020.
Study design: This research using the quantitative descriptive method.
Place and Duration of Study: Financial Services Authority, period 2005 to 2020.
Methodology: This research using quantitative data with secondary data sources whose data is obtained from financial reports that are accessed through the website www.ojk.go.id and www.idx.co.id. Data analysis used different tests using IBM SPSS, including Descriptive Statistics Test, Kolmogorov Smirnov One Sample Test, Wilcoxon Signed-Ranks Test, Paired Sample T-Test, and Multivariate Analysis of Variance (Manova).
Results: The results in this study with Manova there are differences in financial performance before and after M&A. While the of the test with Wilcoxon Signed Ranks-Test and Paired Sample T-Test did not show significant differences in the ratios of CAR, DER, ROA, ROE, BOPO, FDR/LDR, and NPF/NPL before and after M&A.
Conclusion: There is significant differences in financial performance that were tested simultaneously between before and after M&A. Although, there are no differences in the ratio of CAR, DER, ROA, ROE, BOPO, FDR/LDR, and NPF/NPL between before and after M&A.
Keywords: CAR, DER, ROA, ROE, BOPO, FDR/LDR, NPF/NPL, merger, acquisition, financial performance