THE ANALYSIS OF THE COMPANY'S FINANCIAL PERFORMANCE BEFORE AND AFTER THE RIGHT ISSUE ANNOUNCEMENTS (CASE STUDY ON PUBLIC WHOLESALE COMPANIES IN 2008)

Abstract

This study examined eight ratios that represent the four financial ratios, notably Current Ratio (CR), Total Asset Turnover (TATO), Debt Ratio (DR), Gross Profit Margin (GPM), Operating Profit Margin (OPM), Net Profit Margin (NPM), Return on Asset (ROA), and Return on Equity (ROE). It discussed about the right issue announcements toward Company’s Financial Performance (Case Study on Public Wholesale Companies in 2008). The main reason for selecting this topic as research object is to know the right issue that company took to get an ‘extra’ or more capital is the successful way and it will be determine from financial statement from each companies. This research used analysis and paired sample t-test for the hypothesis. The sample for this research took from companies which are doing the right issue in 2008 with same sectors and industries; Trade, Services, and Investment focused on Wholesale Companies. Secondary data was obtained from financial statement on website Indonesian Stock Exchange and from library at Bursa Efek Jakarta. The research results showed Current Ratio from PT Dayaindo Resources International, Tbk has significant differences toward companies before and after doing the right issue. For Gross Profit Margin and Net Profit Margin have significant differences toward companies before and after doing the right issue for PT Agis, Tbk and PT United Tractors, Tbk. This usually does not give very strong reasons to take the right issue as the successful way to get more capital. For that reason, the future research should take other ratios or look inside companies as management behavior or their system of operation also get the other samples maybe could take other sectors and industries.