Banking Stock Abnormal Return Analysis of Pre and Post Merger and Acquisition in Indonesia

Abstract

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.

Funding Decision, Dividend Policy, and Company Growth on Company Value of Primary Goods Sector

“…Utami and Darmayanti's research (2018) arguing that the decision to dress up has a significant positive effect on the value of the company. However, the results of this study do not match the results of research by Astricia et al (Astricia, Andriana, & Ghasarma, 2020) which states that funding decisions do not have a significant influence on the value of the company. Putra and Lestari's research (2016) in line with Utami and Darmayanti's research (2018) argues that dividend policies have a significant positive effect on the value of the company.…”