scholarly journals Abnormal Return and the Charactersitics of Merger and Acquisition in Indonesia

2017 ◽  
Vol 20 (1) ◽  
pp. 31
Author(s):  
Luh Putu Gina Gisella ◽  
Dony Abdul Chalid
Keyword(s):  
Firm Value ◽  
Abnormal Return ◽  
Stock Return ◽  
Abnormal Returns ◽  
Merger And Acquisition ◽  
Sales Growth ◽  
Payment Method ◽  
Cash Payment ◽  
Public Company ◽  
Net Profit

Indonesia also have  experienced the practice of Merger and Acquisition (M & A) transaction, like other parts of the world. This study  aims to see if there are abnormal returns for the acquirer companies in M&A transactions that occurred in Indonesia, and also to test if there are some characteristics related to M&A that affects the abnormal returns. This study uses 143 M & A transaction data public company in Indonesia in 2005 until 2014. Event-study analysis was also conducted to find acquirer abnormal stock return around the announcement of M & A. In addition,  OLS regression was also conducted to find whether the cash payment method in the M & A negatively affects the abnormal return. The  condition of companies (Net Profit Margin, Sales Growth, firm value) also affect the abnormal return. This shows that the method of payment and acquire companies’ conditions have effects on the perception of investors towards M & A transactions that occured.

scholarly journals Kinerja Keuangan, Abnormal Return Sebelum dan Setelah Pengumuman Merger

2017 ◽  
Vol 1 (1) ◽  
pp. 73
Author(s):  
Farid Addy Sumantri
Keyword(s):  
Financial Performance ◽  
Abnormal Return ◽  
Stock Exchange ◽  
Abnormal Returns ◽  
Profit Margin ◽  
Current Ratio ◽  
Return On Equity ◽  
Net Profit ◽  
Before And After ◽  
Price Earnings Ratio

This study aims to examine the differences infinancial performance and abnormal returns in the period before and after the announcement of the merger of the companies listed on the Stock Exchange in the period 2004-2013. In this study the measurement of financial performance using four financial ratios which are the current ratio (CR), the net profit margin (NPM), return on equity(ROE) and price earnings ratio (PER), while the abnormal return is measured using the market return and the actual return. This study used purposive sampling in the sampling study. Company samples tested here are 8 companies from various different types of industries. Hypothesis testing is performed using paired sample t test with a confidence level of 5%. The test results of financial performance in the proxy with the current ratio (CR), the net profit margin (NPM), return on equity (ROE) and price earnings ratio (PER) its how sthe difference before and after the announcement of the merger on the companies listed on the Stock Exchange period 2004-2013.

scholarly journals ABNORMAL RETURN DAN LIKUIDITAS SAHAM ATAS PENGUMUMAN AKUISISI

2017 ◽  
Vol 20 (1) ◽  
pp. 151
Author(s):  
Suherman Suherman ◽  
Riznita Nuraisyah ◽  
Gatot N. Ahmad
Keyword(s):  
Mergers And Acquisitions ◽  
Abnormal Return ◽  
Trading Volume ◽  
Abnormal Returns ◽  
Merger And Acquisition ◽  
Stock Liquidity ◽  
Before And After ◽  
The Difference ◽  
Adjusted Model ◽  
Observation Period

Tujuan penelitian ini adalah untuk menganalisis perbedaan abnormal return dan likuiditas saham sebelum dan sesudah pengumuman akuisisi. Pengukuran abnormal return menggunakan market-adjusted model. Pengukuran likuiditas saham menggunakan volume perdagangan dan Amihud’s Illiquidity ratio. Periode pengamatan (event windows) penelitian ini selama 11 hari bursa, yaitu 5 hari bursa sebelum pengumuman akuisisi dan 5 hari bursa sesudah pengumuman akuisisi. Sampel penelitian ini adalah 70 perusahaan yang mengumumkan akuisisi antara 2010-2014. Hasil uji hipotesis menunjukkan bahwa 1)terjadi perbedaan abnormal return yang signifikan sebelum dan sesudah akuisisi, dan 2)tidak terdapat perbedaan likuiditas saham yang signifikan pada periode sebelum dan sesudah akuisisi.The purpose of this study is to analyze the difference of abnormal return and liquidity before and after the announcement of mergers and acquisitions. Abnormal returns are measured with market-adjusted model. Liquidity is measured with trading volume and Amihud Illiquidity ratio. The observation period (event windows) of this research is 11 trading days which 5 trading days before the announcement of the merger and acquisition and 5 trading days after the announcement mergers and acquisitions. Research sample consists of 70 companies which announce merger and acquisition between 2010 and 2014. The results show that 1)there is significant differences of abnormal returns before and after merger and acquisition, and 2)there is no significant differences of stock liquidity before and after merger and acquisition.

scholarly journals BANKING STOCK ABNORMAL RETURN ANALYSIS OF PRE AND POST MERGER AND ACQUISITION IN INDONESIA

JEMBATAN ◽  
2020 ◽  
Vol 17 (1) ◽  
pp. 13-24
Author(s):  
Rivanny Astricia ◽  
Isni Andriana ◽  
Reza Ghasarma
Keyword(s):  
Mergers And Acquisitions ◽  
Government Policy ◽  
Abnormal Return ◽  
Abnormal Returns ◽  
Merger And Acquisition ◽  
Paired Sample ◽  
Significant Difference ◽  
Study Methodology ◽  
The Difference ◽  
Event Study Methodology

The number of mergers and acquisitions (M&A) in Indonesia is growing because of government policy and also their usefulness as a corporate tool to pursue strategic growth and profit. This study aims to analyze the abnormal returns of banking industries pre and post-merger and acquisition in Indonesia. Using a sample of 7 M&A deals in Indonesia from 2018 to 2019, the event study methodology used in this study is Paired Sample T-Test to tell the difference between pre and post abnormal returns. The data that use for calculating is -30 until +30 of Merger and Acquisition. The result shows that from 7 mergers and acquisition there is only one bank that has a significant difference while the rest does not have a significant difference pre and post the event. This research hopefully can be used for further research, useful for investment practitioners.

scholarly journals Pengaruh DAR, WCTO, NPM, Dan Pertumbuhan Penjualan Terhadap Nilai Perusahaan Food And Beverage

SENTRALISASI ◽  
2019 ◽  
Vol 8 (2) ◽  
pp. 77
Author(s):  
Sinthia Anggi Sitepu ◽  
Meriana Situmorang ◽  
Mei Linda Siregar ◽  
Marice Habeahan ◽  
Jelita Bakara
Keyword(s):  
Stock Prices ◽  
Firm Value ◽  
Stock Price ◽  
Sampling Technique ◽  
Profit Margin ◽  
Sales Growth ◽  
Analysis Model ◽  
Working Capital ◽  
Net Profit ◽  
Food And Beverage

The size of the company's value can be measured through stock prices. The higher the stock price, the higher the profit gained by the company. This study aims to examine the effect of debt to asset ratio, working capital turnover, net profit margin, and Sales Growth on company value on Food and Beverage companies listed on the Indonesia Stock Exchange in 2012-2017. The analysis model used is multiple regression. The population of this study was 21 companies with a sample of 12 companies. This sampling technique uses purposive sumpling. The results of this study indicate simultaneously debt to asset ratio, working capital turnover, net profit margin, and Sales Growth have no significant effect on firm value. While partially debt to asset ratio has no significant effect, working capital turnover partially has no significant effect, net profit margin partially has a significant effect and Sales Growth partially has no significant effect.

Announcements Effect of Corporate Bond Issuance on Stock Returns: Evidence from Chile

2021 ◽  
Vol 37 (71) ◽  
pp. e2411242
Author(s):  
Edinson Edgardo Cornejo-Saavedra ◽  
Jorge Andrés Muñoz Mendoza ◽  
Carlos Leandro Delgado Fuentealba ◽  
Sandra María Sepúlveda Yelpo ◽  
Carmen Lissette Veloso Ramos
Keyword(s):  
Stock Returns ◽  
Abnormal Return ◽  
Stock Return ◽  
Stock Exchange ◽  
Statistical Significance ◽  
Abnormal Returns ◽  
Corporate Bond ◽  
Announcement Effect ◽  
Santiago De Chile ◽  
Average Abnormal Return

This study measures the announcement effect of corporate bond issuance on stock returns for companies listed on the Santiago de Chile Stock Exchange (BCS). The sample is made up of 29 firms and 87 corporate bond issuance announcements during the 2010-2017 period. The announcement effect of corporate bond issuance on stock return is measured by an event study. This methodology allows to calculate abnormal returns for the days of the event period. The results show that the average abnormal return on the day of the announcement is negative (between -0.09% and -0.03%), but it is not statistically significant. However, the average abnormal return on the day after the announcement is positive (between 0.27% and 0.32%) and has statistical significance. The significant and positive average abnormal return on the day after the announcement suggests a late market reaction. The study shows that there is a significant signaling effect of bond issuance announcements on stock returns.

scholarly journals Impact of Merger and Acquisition Announcements on Stock Return, Volatility and Liquidity of Acquirers: Evidence from the Indian Banking Sector

2020 ◽  
Vol 19 (1) ◽  
Author(s):  
Pinky Mal ◽  
Keyword(s):  
Event Study ◽  
Stock Prices ◽  
Stock Return ◽  
Banking Sector ◽  
Abnormal Returns ◽  
Merger And Acquisition ◽  
Stock Volatility ◽  
Study Methodology ◽  
Acquisition Announcements ◽  
Event Study Methodology

This study attempts to examine the stock behaviour of acquirer banks during pre and post-merger and acquisition (M&A) announcement period in the Indian banking sector. Data of M&A events that took place in the Indian banking sector during 2000-2018 was collected from the prowessdx database. The sample consisted of 31 merger and 351 acquisition announcements during 2000-2018 in the Indian Banking sector. Stock prices of sample banks were extracted from the NSE for an event window of -10 to +10 days and the event study methodology was used for analysis. The results suggest that shareholders of Indian acquirer banks generate small and insignificant abnormal returns from M&A deals. Return variability was also noticed from the curvy jumps in the average abnormal spread of returns during the announcement period. Whereas, the average abnormal change in liquidity witnessed a sharp hike on day 0 i.e. the date of deal announcement and it remained negative throughout the post-deal period. KEYWORDS: Mergers and Acquisitions, Stock Return, Stock Volatility, Stock Liquidity, Event Study Methodology.

scholarly journals WHAT DRIVES MERGERS & ACQUISITIONS WAVES OF LISTED COMPANIES OF THE CHINEXT MARKET? IPO OVER-FINANCING OR STOCK OVERVALUATION

2018 ◽  
Vol 24 (4) ◽  
pp. 1499-1532 ◽  
Author(s):  
Xin Xu ◽  
Yong-jin Liang ◽  
Shun-lin Song
Keyword(s):  
Mergers And Acquisitions ◽  
Market Reaction ◽  
Abnormal Returns ◽  
Market Value ◽  
The United States ◽  
Payment Method ◽  
Cumulative Abnormal Returns ◽  
Cash Payment ◽  
The Government ◽  
Corporate Mergers And Acquisitions

A wave of mergers and acquisitions (M&A) has been consistently rising among the China’s ChiNext companies over the past years, which has drawn great attention across academia and industry. Based on the neoclassical theory and the behavioral theory, this paper explores the driving factors of M&A among Chinese ChiNext companies. Two hypotheses were put forward: one based on IPO over-financing and the other based on the market value overvaluation. IPO over-financing is specific to the Chinese capital market while market value overestimation is driven by the continuous upsurge in the ChiNext Market. Our study found that both factors account for enterprises’ mergers and acquisitions. They have far-reaching influences on such fields as acquisition probability, the size of the transaction, transaction frequency, M&A payment method and market reaction. Due to IPO over-financing, enterprises tend to carry out M&A via cash payment or cash and stock mixed payment method. Heavier IPO over-financing will increase the chance of M&A and leads to larger transaction size and higher transaction frequency. Market value overvaluation will lead to more uses of stock or cash and stock mixed payment on M&A transactions. When the company’s stock is overvalued, the company will use the overvalued equity to acquire other companies. Greater overvaluation of the market value also increases the chance of M&A and leads to a larger transaction size and higher frequency of M&A. In China, IPO over-financing rather than market value over-valuation, is the major driving factor for China’s corporate mergers and acquisitions. Further study found that the market reaction to different payment methods in mergers and acquisitions varies: it has the minimum reaction on cash payment, a larger reaction on stock payment and the greatest reaction on mixed payment. Also, the mixed payment method has the largest cumulative abnormal returns. This is different from the empirical findings in the United States and Europe. This paper provides a theoretical basis and empirical evidence for an in-depth understanding of the wave of mergers and acquisitions of Chinese ChiNext companies, and provides a basis for decision-making and policy recommendations for the government regulators and investors.

scholarly journals Analisis Pengaruh Merger dan Akuisisi terhadap Kinerja Keuangan dan Abnormal Return pada Perusahaan di Bursa Efek Indonesia Tahun 2014-2018

2021 ◽  
Vol 5 (1) ◽  
pp. 34
Author(s):  
Sylvi Liani Dewi ◽  
Indra Widjaja
Keyword(s):  
Abnormal Return ◽  
Abnormal Returns ◽  
Merger And Acquisition ◽  
T Test ◽  
Rank Test ◽  
Paired Sample ◽  
Signed Rank ◽  
Wilcoxon Signed Rank Test ◽  
Before And After ◽  
Signed Rank Test

This study aims to examine the difference in firm performances and abnormal returns before and after the merger and acquisition in the companies listed on the Indonesian Stock Exchange in the year 2014 to 2018. The data observation period is 1 year before the merger dan acquisition and 2 years after merger and acquisition. The analysis technique used is the Wilcoxon Signed Rank Test for ratio performance and Paired Sample T-test for abnormal return. The results of the testing of the hypothesis show that period 1 year before M&A and comparison comparison 2 years after M&A shows there is no significant difference in company financial performance before and after merger and acquisition. Hypothesis for Abnormal return, there is no difference before and after merger and acquisition.Penelitian ini bertujuan untuk menguji perbedaan kinerja perusahaan dan abnormal return sebelum dan sesudah merger dan akuisisi pada perusahaan yang terdaftar di Bursa Efek pada tahun 2014 hingga 2018. Periode observasi data adalah 1 tahun sebelum merger dan akuisisi dan 1& 2 tahun sesudah merger dan akuisisi. Metode analisa data yang digunakan adalah Wilcoxon Signed Rank Test dan Paired Sample T-Test untuk abnormal return. Hasil pengujian hipotesis menunjukkan bahwa periode 1 tahun sebelum M&A dan perbandingan 2 tahun setelah M&A menunjukkan tidak ada perbedaan signifikan dalam kinerja keuangan perusahaan sebelum dan sesudah merger dan akuisisi. Hipotesis untuk Abnormal return, tidak ada perbedaan sebelum dan sesudah merger dan akuisisi.

scholarly journals ANALISIS FAKTOR-FAKTOR YANG MEMENGARUHI ABNORMAL RETURN SAHAM PADA PERUSAHAAN PERBANKAN DAN ASURANSI YANG TERDAFTAR DI BURSA EFEK INDONESIA

BISMA ◽  
2017 ◽  
Vol 11 (1) ◽  
pp. 12
Author(s):  
Sidiq Jati Permana
Keyword(s):  
Abnormal Return ◽  
Stock Exchange ◽  
Abnormal Returns ◽  
Secondary Data ◽  
Insurance Companies ◽  
Return On Equity ◽  
Net Profit ◽  
Negative Effect ◽  
Equity Ratio ◽  
Research Show

Abstract: This research aims to analyzes the effect of profitability (NPM and ROE) and leverage (DER and DR) partially to stock abnormal returns at the Banking and Insurance Companies Listed Indonesia Stock Exchange, also to analyze the different effect of profitability (NPM and ROE) and leverage (DER and DR) on stock abnormal returns at the Banking and Insurance Companies Listed Indonesia Stock Exchange. Data used in this research are secondary data collected from ICMD and Annual Report of Companies in Indonesia Stock Exchange at 2010 – 2014, and www.yahoofinance.com. The populations in this research are the Banking and Insurance Companies Listed in Indonesia Stock Exchange. Sampling method is purposive sampling. The model of analysis used in this research is multiple linier regressions. Results of this research show that NPM have positively and significant effet on stock abnormal return at the Banking and Insurance Companies Listed Indonesia Stock Exchange. ROE have positively and significant effect on stock abnormal returns. DER has negatively but not significant effect on stock abnormal returns at the Banking and Insurance Companies Listed Indonesia Stock Exchange. DR has positively but not significant effect on stock abnormal returns at the Banking Companies Listed Indonesia Stock Exchange. While for the insurance companies, DR has negative effect but not significant on stock abnormal returns. There are differences in the effect of profitability (NPM and ROE) and leverage (DER and DR) to the stock abnormal returns on the Banking Companies Listed Indonesia Stock Exchange .Keywords: profitability, leverage, Net Profit Margin/NPM, Return on Equity/ROE, Debt to Equity Ratio/DER, Debt Ratio/DR, and abnormal return

scholarly journals When Good Things Turn Bad: Evidence from G-7 Serial Acquirer Bidding

2020 ◽  
Vol 16 (2) ◽  
pp. 145-177
Author(s):  
Ibrahim Yousef
Keyword(s):  
Mergers And Acquisitions ◽  
Firm Value ◽  
Abnormal Returns ◽  
Shareholder Wealth ◽  
Bivariate Analysis ◽  
Payment Method ◽  
Average Abnormal Return ◽  
Industry Diversification ◽  
The Impact ◽  
Serial Acquirer

This study investigates the impact of acquirer bidding experience on acquiring abnormal returns based on empirical evidence from a large sample of 10,880 bidders making 23,852 deals from G-7 countries. Both event study and regressions analysis have been used to examine the impact of acquirer bidding experience on acquirer returns. The findings show that “single acquirers” achieve higher returns, with a cumulative average abnormal return (CAAR) of 3.354%, but this number tends to decrease with increasing numbers of previous bids. In addition, the results of the bivariate analysis demonstrate that a single acquisition alone generates greater abnormal returns than those which are part of a series of acquisitions, with very robust results even after accounting for additional heterogeneity in payment method, target status and country/industry diversification. The findings of the multivariate analysis also confirm that serial acquirers are associated with significantly lower abnormal returns. This evidence conflicts with the notion that more experience with mergers and acquisitions (M&As) will correspond to improve target valuation and thus lead to more profitable agreements. In contrast, my findings imply that shareholder wealth is destroyed by serial acquirers, which suggests that the goal of maximising firm value is not always the sole motivation for engaging in M&A activities.

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