ANALYSIS PROFITABILITY OF COMPANY BEFORE AND AFTER MERGER (A case study on the company's merger in 2009 to 2014 are listed in Indonesia Stock Exchange)
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Date
2016-11
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1st Comparative Asia Africa Governmental Accounting Conference (CAAGA), Mercu Buana University, 16 -17
Abstract
Merger is combination of two or more companies to establish a new
company. Merger happens when a company takes over all the operations
of other business entities and the entities which taken over is dissolved. This
research aims to analyze profitability of company before and after merger
in companies listed in Indonesia Stock Exchange. Profitability is measured
by using ratios: Net Profit Margin (NPM), Return on Equity (ROE), Return
on Investment (ROI). This research takes population from all of the
company that done merger in period of 2009-2014. The samples of this
research consists of 3 firms from non-banking category are listed in
Indonesia Stock Exchange. The ratios of data obtained from company’s
financial statements are published. The analysis used to test the hypothesis
of this research is descriptive and comparative analysis with a statistical test
Paired Sample T Test. The results from Paired Sample T Test shows that
there was difference for Net Profit Margin, Return on Equity and Return On
Investment ratios before and after merger in period of observation and
testing.
Description
Keywords
Mergers, Profitability, Paired Sample T Test