THE EFFECT OF TRANSFERRING OWNERSHIP OF PT. PHAPROS TBK. ON FINANCIAL PERFORMANCE Meiryani, Christian Allen, Radifan Wisnu Pradana, Raihan Fadilla
Accounting Department, Faculty of Economics and Communication, Bina Nusantara University, Jakarta, Indonesia
Abstract
This research discusses the effect of the acquisition of a corporation on the financial performance of the acquired company. Financial performance is measured through financial ratios consisting of liquidity ratios represented by current ratio (CR) and quick ratio (QR), business activity ratios represented by total assets turnover (TATO), profitability ratios represented by return on assets ( ROA) and net profit margin (NPM), market ratios represented by price to earnings ratio (PER), finally solvency ratio represented by debt to equity ratio (DER) and total debt to asset ratio (DAR). This study uses secondary data obtained from the Indonesia Stock Exchange (IDX). The measurement is carried out by comparing those ratios in the period 1 year before the acquisition and 1 year after the acquisition. The research method used was a test marked Wilcoxon Test. The result is that there is no significant difference to financial performance before and after the acquisition. This indicates that this acquisition has not been able to improve the company^s performance. The study also advises companies to make more thorough calculations when making acquisition actions so that the benefits of acquisitions can be felt by both parties.
Keywords: Transferring Ownership, Financial Performance, Return on Asset, Debt to Equity Ratio, Total Asset Turnover, Quick Ratio
