ANALYSIS OF DIFFERENCES IN FINANCIAL PERFORMANCE OF DOMESTIC BANKS BEFORE AND AFTER ACQUISITIONS BY BANKS FROM JAPAN AND KOREA

Richard Ferdinand Rimbing

Abstract

This research aims to determine the acquisition of the financial performance of Korean Banks and Japanese Banks in Indonesia before and after the acquisition. This research is carried out on companies in the banking industry originating from Japan and Korea and making acquisitions in Indonesia that have been allowed by OJK to operate. The population of this study is Domestic Banks which were acquired by banking companies from Japan and Korea which operated after acquiring other local companies between 2003 and 2016 with a total of 6 companies. The sampling technique was carried out by non-probability sampling. The data analysis technique used in this study is descriptive statistics, normality test, while the mean difference test used is paired sample t-test. The results of this research illustrate that there are differences in NPM before and after the acquisition. Further, there is no difference in ROA, DER, CAR and LDR before and after the acquisition

Keywords: Net Profit Margin, Return on Assets, Debt to Equity Ratio, Capital Adequacy Ratio, Loan to Deposit Ratio

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