AN ANALYSIS OF MERGER AND ACQUISITION IN REGARD TO STOCK RETURN AND TRADING VOLUME IN COMPANIES LISTED ON INDONESIA STOCK EXCHANGE

Abstract

The idea of ​​this research is to analyze the impact of mergers and acquisitions on trading volume and stock returns of companies listed on Indonesia Stock Exchange. The approach used in this study is a quantitative method with the target of companies that have undergone mergers and acquisitions and are listed on Indonesia Stock Exchange between 2015-2020. Based on statistical tests on the value of stock returns during the event period, there is no significant change in the value of stock returns around mergers and acquisitions, nor changes in stock returns before and after mergers and acquisitions, this reveals that this research does not support the notion that there is a change in value stock returns before and after mergers and acquisitions, which is also evident from the results of the t-statistic test based on the results of the business volume statistical test (TVA). The results of this study show that there are changes in value before and after mergers and acquisitions, but there are no significant changes in TVA values ​before and after mergers and acquisitions. The lack of meaning surrounding the merger and acquisition event, namely three days before the acquisition, reveals that this study does not support the conjecture.