Title : Comparative Analysis of Pra-Post Merger and Acquisition Financial Performance Reviewed From EVA, MVA and Financial Ratio Methods (Empirical Study of Non-Financial Sector Companies Listed on the IDX for the Period 2015-2020)

Vol 7 No 7 (2024): Volume 07 Issue 07 July 2024

Article Date Published : 13 July 2024 | Page No.: 5010-5023 | Google Scholar | Crossref doi for this article

Abstract :

This study aims to compare the pre-post M&A financial performance of non-financial companies listed on the Indonesia Stock Exchange (IDX) in the 2-year period before mergers and acquisitions (M&A), in the year of M&A, and 2 years after M&A. Performance was measured using Economic Value Added (EVA), Market Value Added (MVA), and financial ratios. The research sample consisted of 22 companies selected by purposive sampling, and secondary data were analyzed from financial statements. Partial analysis was conducted with the Wilcoxon Sign Test because the data was not normally distributed, while simultaneous analysis used the MANOVA test with the STATA version 17 application. The results of simultaneous testing showed no significant difference in financial performance between before and after M&A. However, partial test results found significant differences in MVA variables in the period 2 years before, 1 and 2 years after M&A, as well as in the year of M&A. In addition, the ROA variable also shows significant differences in the 2-year period before, 1 and 2 years after M&A. However, the effect of M&A on MVA and ROA variables tends to be negative.

Keywords :

Acquisition, economic value added, Financial performance, Financial ratio., Market Value Added, merger

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https://doi.org/10.1177/23197145211053400

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Author's Affiliation

   Eunike Rosni Bohalima
Faculty of Economic and Business, University of North Sumatera

   Erlina .
Faculty of Economic and Business, University of North Sumatera

   Firman Syarif
Faculty of Economic and Business, University of North Sumatera

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Eunike Rosni Bohalima, Erlina ., Firman Syarif, 2024

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Comparative Analysis of Pra-Post Merger and Acquisition Financial Performance Reviewed From EVA, MVA and Financial Ratio Methods (Empirical Study of Non-Financial Sector Companies Listed on the IDX for the Period 2015-2020). Eunike Rosni Bohalima, Erlina, Firman Syarif , 7(7), 5010-5023. Retrieved from https://ijcsrr.org/single-view/?id=17752&pid=17470

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