Synergy Value from Bank Consolidations in Indonesia
- DOI
- 10.2991/icebess-18.2019.10How to use a DOI?
- Keywords
- bank, consolidation, synergy value, financial performance
- Abstract
Developing nations witnessed tremendous numbers of domestic bank mergers and acquisitions (M&As) and foreign acquisitions in response to deregulation, technological advances, and the globalization of nonfinancial economic activity. These changes in the corporate governance of banks raise essential questions about how these changes create value that can affect bank performance and are the changes permanent or do they tend to return to their previous conditions. This research aims to assess the synergy value created from change of ownership and its effect toward bank’s performance shown in their relative performance as well as their standard financial ratios. Data in this research is taken from 37 observations of banks that operated in Indonesia at 2011 – 2016, and then the observations will be analyzed using panel data analysis. Consistent with the previous research, the result of this study shows that there is synergy value created from the consolidations that affects bank performance. Both domestic and foreign acquisitions affect positively in bank performance. While domestic acquisition show improvement in profitability, the foreign acquisition show improvement in asset quality and efficiency.
- Copyright
- © 2019, the Authors. Published by Atlantis Press.
- Open Access
- This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).
Cite this article
TY - CONF AU - Uke Pitaloka Antariksaningruma AU - Uke Pitaloka Antariksaningrum AU - Willem Makaliwea PY - 2019/04 DA - 2019/04 TI - Synergy Value from Bank Consolidations in Indonesia BT - Proceedings of the International Conference of Ethics on Business, Economics, and Social Science (ICEBESS 2018) PB - Atlantis Press SP - 59 EP - 62 SN - 2352-5398 UR - https://doi.org/10.2991/icebess-18.2019.10 DO - 10.2991/icebess-18.2019.10 ID - Antariksaningruma2019/04 ER -