THE EFFECT OF MERGERS AND ACQUISITIONS ON FINANCIAL PERFORMANCE OF GO PUBLIC MANUFACTURING COMPANIESIN INDONESIA WHICH REGISTERED IN INDONESIA STOCK EXCHANGE

Abstract

The purpose of this study is to explain the effect of mergers and acquisitions on the financial performance of Go Public manufacturing companies in Indonesia which are listed on the Indonesia Stock Exchange. The calculated ratio is financial ratios, namely Current Ratio, Debt to Equity Ratio, Net Profit Margin, Return on Assets, Return on Equity, Current Ratio Variables, showing no difference in the period of 2 years before and after mergers and acquisitions, seen by paired test sample t_test is greater than probability value or Sig. (2-tailed) which has a significance value of 0.745 (0.745> 0.05). The variable Debt to Equity Ratio shows that there is no difference in the period of 2 years before and after mergers and acquisitions, seen by the paired sample t_test test greater than the probability value or the Sig. (2-tailed) which has a significance value of 0.122 (0.122> 0.05). The Net Profit Margin variable shows that there is no difference in the period of 2 years before and after mergers and acquisitions, seen by the paired sample t_test test that is greater than the probability value or Sig. (2-tailed) value of 0.132 (0.132> 0, 05). Variable Return on Asset shows that there is a difference in the period of 2 years before and after mergers and acquisitions, seen by the paired sample t_test test lower than the probability value or the Sig (2-tailed) value which is a significance value of 0.020 (0.020 <0.05 ) Variable Return on Equity shows that there is a difference in the period of 2 years before and after mergers and acquisitions, seen by the paired sample t_test lower than the probability value or the Sig (2-tailed) value which is a significance value of 0.010 (0.010 <0.05).

Keywords: Mergers and Acquisitions, Financial Performance