Title:
BANK'S FINANCIAL PERFORMANCE BEFORE AND AFTER ACQUISITION BY FOREIGN INVESTORS AND DOMESTIC INVESTORS

Authors:
Istiqfarin Dwi Hardiana and Bambang Mulyana, Indonesia

Abstract:

Acquisition is a merger by means of taking over shares or assets of another company with the aim of increasing core capital. The purpose of this study is to determine and analyze the financial performance of the bank before and after being acquired by foreign and domestic investors in the period 2002-2011. This study uses the RGEC method which consists of a Risk Profile, Good Corporate Governance, Earnings, and Capital. The sampling technique is to use saturated samples, so that the sample = population is 7 banks and the paired sample is used as a test tool. The results of the analysis show that banks acquired by foreign investors on the measuring instruments of NPL, LDR, ROA, ROE, BOPO, except NIM and CAR, are better than banks acquired by domestic investors.