The Effect of Mergers on the Company's Financial Performance Capability

Authors

  • Rizky Habib Hasibuan Universitas Muhammadiyah Sumatera Utara Author
  • Muhammad Afif Harahap Universitas Muhammadiyah Sumatera Utara Author

Keywords:

Profitability, Marger, Company Financial Performance

Abstract

A merger is an agreement that occurs between two or more companies with the aim of forming a new economy. Companies will join if they have weak business strength caused by economic factors that occur. Mergers are carried out to gain a wider market share, increase revenue, reduce operating costs, and so on. This also happened to PT Selamat Sempurna in carrying out new business strengths to get better profits. This research was conducted using a descriptive analysis method with a literature review study data collection technique relating to the company PT Selamat Sempurna and collecting information about financial performance on the subject of the data source. Based on the results obtained, it shows that the values of NPM, ROA, and ROE show no differences before and after financial mergers. However, increasing profitability is an effort to save the company from the threat of bankruptcy

References

Yulianti, F. (2014). Comparative Analysis of Financial Performance Before and After the Merger at PT. Selamat Sempurna Tbk (Doctoral dissertation, UIN Sunan Gunung Djati Bandung).

Hardianti, MF (2012). ANALYSIS OF THE IMPACT OF MERGER ON FINANCIAL PERFORMANCE OF PT Selamat SEMPURNA, Tbk (Doctoral dissertation, University of Muhammadiyah Malang).

Nina Tri, C. (2010). COMPARISON OF FINANCIAL PERFORMANCE BEFORE AND AFTER THE MERGER OF COMPANIES LISTED ON THE INDONESIA STOCK EXCHANGE (Doctoral dissertation, University of Muhammadiyah Malang).

Lestari, NP (2011). Earnings management and financial performance of acquirer before and after merger. Business Management, 1(2).

Afini, L. (2009). Analysis of financial statements to assess the financial performance of PT. slamet perfect Tbk (Doctoral dissertation, Mercu Buana University).

Ariskawati, R. (2017). PORTFOLIO ANALYSIS IN DETERMINING STOCK INVESTMENT IN THE AUTOMOTIVE INDUSTRY LISTED ON THE INDONESIA STOCK EXCHANGE. SEGMENT Journal of Management and Business, 13(1).

Sukmadilaga, C., & Nugroho, L. (2021). URGENTITY, JUSTICE AND SHARIA MAQASID IN SHARIA BANK MERGER. HUMAN FALAH: Journal of Islamic Economics and Business Studies, 8(2).

Kurniawati, C. (2020). ANALYSIS OF FINANCIAL PERFORMANCE BEFORE AND AFTER MERGER AND ACQUISITION (Case Study of Go Public Companies Registered on the IDX).

Manurung, AH, FoEh, JE, Ni Nyoman, S., & Saragih, HS (2021). Corporate Restructuring: Mergers, Acquisitions and Consolidation and Their Financing

Downloads

Published

2023-02-27

How to Cite

The Effect of Mergers on the Company’s Financial Performance Capability. (2023). Central: Journal of Economics and Law, 1(1), 5-8. https://jurnal.yrpk.org/index.php/central/article/view/2