THE COMPARISON OF FINANCIAL PERFORMANCE BEFORE AND AFTER ACQUISITION ON COMPANIES LISTED IN INDONESIA STOCK EXCHANGE

Abstract

This research aim to compare the financial performance before and after acquisition on companies listed in Indonesia Stock Exchange. The financial performance is measured by using financial ratios. The population of this research are all companies that has done acquisition in period 2011-2012. The sample of this research are 14 public companies listed in IDX from raw material, service and manufacturing industries that were taken by purposive sampling method. The observation period for the the financial performance is one year before and 5 years after the acquisition. The data analysis method in this research is paired sample t-test, which is used to compare the samples. The result of the research shows that there is no significant difference in terms of CR, TATO, DR, NPM, and EPS between one year before and five years after the acquisition. However there is significant difference in terms of DER, ROA, and ROE after five years of acquisition. The result of the third and the fourth year after the acquisition is that only ROA and ROE shows significant difference.