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Original Research Article
The impact of acquisition on acquirer companies’ financial performance
1*Muhammad Syukur and 2Fauziah A. Fitri
1Department of Logistics and Supply Chain Management, School of Management, Mae FahLuang University, Chiang Rai 57000, Thailand.
2Department of Accounting, Faculty of Economics, Syiah Kuala University, Darussalam, Banda Aceh 23111, Indonesia.
*Corresponding Author: msyukurmail(at)gmail.com
Article Number: | Pages: | | DOI:
Received: September 29, 2016 Accepted: December 1, 2016 Published: December 16, 2016
Abstract
Acquisition is a strategy to improve performance of a company. However, several previous researches show that acquisition cannot improve the performance. The purpose of this study is to examine the impact of the acquisition on acquirer companies’ financial performance. The population of this study is 21 Indonesian companies that were involved in acquisition during 2011-2013. The data are financial ratios, collected from the Indonesian Capital Market Directory provided by the Indonesian Stock Exchange website. To analyze the performance, five ratios are used in this research. Paired sample t-test is applied to the ratios with the help of statistical software called PASW (Predictive Analytics Software). The findings confirm that liquidity, leverage, efficiency, profitability, and market value decrease insignificantly a year after the acquisition. Therefore, it is concluded that there is no significant difference in financial performance between pre and post-acquisition.
Keywords: Acquirer companies, acquisition, financial performance, financial ratios