DAMPAK PELAKSANAAN MERGER DAN AKUISISI (M&A) TERHADAP TINGKAT EFISIENSI DAN KINERJA PASAR PERUSAHAAN: STUDI KASUS PADA PERBANKAN DI INDONESIA

Abstract

This research aims to examine the effects of M&A on the efficiency and market performance of publicly listed banks in Indonesia from 2007 to 2018.  Using a paired t-test, The level of banking efficiency as measured by Return on Assets, Return on Equity, and Cost Efficiency Ratio was found to have significantly increased (differenced) over the three years before and after the M&A. In addition, when analyzing the impact of M&A on a company's market performance, the level of long-term investment returns attained by investors, as measured by the Buy-and-Hold Abnormal Return (BHAR), is smaller than its counterpart. This study broadens the discussion on how M&A affect company performance after they are executed.

Keywords: M&A, bank, Indonesia, performance, BHAR