Authors :
Yumiad Fernando Richard; Apolinaris S. Awotkay; Maria Natalia Wainip Epin; Mensy Otelyo Kastanya
Volume/Issue :
Volume 7 - 2022, Issue 2 - February
Google Scholar :
http://bitly.ws/gu88
Scribd :
https://bit.ly/3HFHEx9
DOI :
https://doi.org/10.5281/zenodo.6326885
Abstract :
This study examines the stock market
performance of Indonesian banking firm conducting
mergers and acquisitions (M & A) in the period 2019.
The purpose of this study is to investigate the impact of
M&A agreements on the performance of takeover
banks. A total of 3 firm involved in the 2019 M&A
agreement were sampled in this study. This study uses
two methods, namely the event study method with a
market model approach and an accounting approachbased method, to examine the impact of M&A. The
results showed that abnormal returns measured using
CAR were not better after M&A and financial
performance proxied by ROA, ROE, BOPO, gross NPL,
and LDR also showed poor performance after M&A.
However, the firm's size showed an increase and was
statistically significant after M&A.
Keywords :
Mergers, Abnormal Returns, Financial Performance, Banking
This study examines the stock market
performance of Indonesian banking firm conducting
mergers and acquisitions (M & A) in the period 2019.
The purpose of this study is to investigate the impact of
M&A agreements on the performance of takeover
banks. A total of 3 firm involved in the 2019 M&A
agreement were sampled in this study. This study uses
two methods, namely the event study method with a
market model approach and an accounting approachbased method, to examine the impact of M&A. The
results showed that abnormal returns measured using
CAR were not better after M&A and financial
performance proxied by ROA, ROE, BOPO, gross NPL,
and LDR also showed poor performance after M&A.
However, the firm's size showed an increase and was
statistically significant after M&A.
Keywords :
Mergers, Abnormal Returns, Financial Performance, Banking
