Financial analysis of mergers in the indonesian banking industry
This thesis evaluates the financial performance of Bank Permata, Bank Mandiri, and Bank Danamon before their merger (the legacy banks) from 1997 to 2002 (except Bank Mandiri until year 1999 and Bank Danamon until year 2000), and the financial performance of Bank Permata, Bank Mandiri, and Bank Danamon after the merger in year 1999 (only for Bank Danamon and Bank Mandiri, while for Bank Permata from year 2002) to 2006. The purposes of this research are (1) analyzing and evaluating the financial performance each bank before and after the merger, (2) comparing the financial ratios of each before and after the merger, and (3) identify the synergy that occurred during the after merger process.rnrnThe methodology being used in this thesis is quantitative study, where using the hypothesis testing and mean statistical tools such as F-test, t-test, ANOVA, Tukey-Kramer to analyze the financial ratios and performance. The Du Pont System and Discounted Cash Flow analysis are also used in this thesis to gain deeper examination for the after-merger ROA and ROE performances and calculating the Free Cash Flow and Equity value respectively.rnrnThe analytical and empirical findings of this research show that the after merger process created synergy that has different value for each banks. The ROA and ROE were affected by Asset Turonver, Net Profit Margin, and Equity Multiplier. And also most of the financial performances were increases in after-merger period.
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