Fadlitama, Luthfie and Adawiyah, Wardatul (2017) The Effect Of Mergers And Acquisitions On Abnormal Return: Case Study Of 46 Listed Companies In Indonesia Stock Exchange (IDX) From 2010-2016. Bachelor thesis, Swiss German University.

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Abstract

This research aims to analyze whether there is a significant difference of abnormal returns due to the occurrence of mergers and acquisitions activity in which affect the wealth value of the shareholders and to determine the return of the shareholders after mergers and acquisition proportion is announced. In order to calculate the abnormal returns, this research uses two different approach; market model and market adjusted model. The population of this study is companies that had gone through mergers and acquisitions activity from 2010-2016. There are 35 acquiring firms and 11 target firms listed in Indonesia Stock Exchange (IDX) chosen as sample of this research. Stock prices history and market index were obtained from IDX database. The methods of analysis are using event study methodology and Paired Sample T-test using SPSS software. Event study methodology is used to determine the abnormal return using market model and market adjusted model over period 10 days before and 10 days after consummation of mergers and acquisitions. The result of this study shows that significant abnormal returns before and after mergers and acquisitions activity is not exist (accept H0). Furthermore, when proportion (mergers and acquisitions of more than 50% and less than 50% of target interests) is used to analyze the return for shareholders, the results show that mergers and acquisitions of more than 50% target interests generate positive return for shareholders of acquiring and target firms (reject H0). In mergers and acquisitions of less than 50% only accrue positive return for shareholders of acquiring firms (reject H0) while shareholders of target firms suffer negative return (accept H0).

Item Type:	Thesis (Bachelor)
Uncontrolled Keywords:	Mergers and Acquisitions; Event Study; Paired Sample T-Test; Abnormal Returns; Market Model
Subjects:	H Social Sciences > HG Finance > HG1722 Bank mergers H Social Sciences > HG Finance > HG4551 Stock exchanges
Divisions:	Faculty of Business Administration and Communication > Department of Business Administration
Depositing User:	Astuti Kusumaningrum
Date Deposited:	09 May 2020 13:36
Last Modified:	09 May 2020 13:36
URI:	http://repository.sgu.ac.id/id/eprint/173

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