COMPARATIVE EFFECTS OF MERGERS AND ACQUISITIONS ON THE COMPANIES’ FINANCIAL PERFORMANCE

This study aims to determine the comparative financial performance of companies before and after mergers and acquisitions.Company performance is measured by using financial ratios, namely: current ratio, total asset turnover, debt to equity ratio and net profit margin.While the object of this study include eleven manufacturing companies listed on the Indonesia Stock Exchange (BEI) in the period of 2009-2013 that once conducted mergers and acquisitions.Data analysis method used is quantitative method, using SPSS 21 with the Kolmogorov-Smirnov normality test, Wilcoxon signed rank test and paired sample t-test.Paired sample t-test on CR and DER ratios differ two years and three years before and after merger acquisition and three years before and three years after mergers and acquisitions, while TATO is different two years before and three years after mergers and acquisitions.However, NPM did not differ in all observation periods.