The Evaluation of Mergers on the Financial Performance of PT Bank Syariah Indonesia

Maya Puspita Sari*  -  Universitas Terbuka, Indonesia

(*) Corresponding Author
DOI: 10.21580/at.v14i2.17908

To increase the market share and strengthen the capital of Islamic banking in Indonesia as well as to expand their business activities, the government expanded Islamic banks externally through the merger of three state-owned Islamic banks to become Bank Syariah Indonesia. The method used in this research is descriptive quantitative where this study analyzes the financial performance of Islamic Banks forming Bank Syariah Indonesia which consists of 3 (three) Islamic banks namely PT Bank Syariah Mandiri, PT Bank BRI Syariah, and PT Bank BNI Syariah during the research period 2019-2022, by comparing 2 periods before and 2 periods after the merger. The results of the Paired sample t-test showed that there were differences for the 5 (five) financial ratios of the 8 (eight) financial ratios studied between before and after the merger in the observation period. These results indicate that the merger provided a significant improvement in the financial performance of PT Bank Syariah Indonesia.

  1. Ahmadi, PF, Alboneh, Z., & Ardiansyah, F. (2021). Analysis of Financial Performance of Islamic Banking Before Merger to Become Bank Syariah Indonesia. Indonesian Journal of Accounting and Business Research, Vol. 1 , No. 1.
  2. Anjarani, Rizki & Uman (2022). Health Analysis of Bank Syariah Indonesia (Bsi): Comparison Before and After the Merger . Journal of Management and Business Dynamics. Vol.1, No. 2.
  3. Alhusain, USA (2021). Bank Syariah Indonesia: Challenges and Strategies in Encouraging the National Economy. Journal of Economics and Public Policy DPR RI, Vol. 13, No. 3, 19-24.
  4. Astuti, D. & Drajat, DY (2021). Comparative Analysis of Financial Performance Before and After the Merger at PT Bank Woori Saudara Indonesia 1906 Tbk. Journal of Management Science, Vol. 3, No. 1.
  5. Bajgai, G., & Pradhan, R. (2021). An Assessment of Financial Performance and Service Facility Improvement after Merger and Acquisition of Financial Institutions of Nepal. International Research Journal of MMC, Vol. 2 , No. 2.
  6. Cartwright, S. & Schoenberg, R. (2006 . Thirty Years of Mergers and Acquisitions. Research: Recent Advances and Future Opportunities. British Journal of Management, Vol.17, S1-S5.
  7. Dewi, SL (2020). Analysis of the Effect of Mergers and Acquisitions on Financial Performance and Abnormal Returns of Companies on the Indonesia Stock Exchange in 2014-2018. Journal of Business Management and Entrepreneurship, Vol. 5, No. 1.
  8. Dewi, SL, & Widjaja, I. (2021). Analysis of the Effect of Mergers and Acquisitions on Performance Finance and Abnormal Return to Companies on the Indonesia Stock Exchange 2014- 2018. Journal of Business Management and Entrepreneurship, Vol. 5 , No. 1.
  9. Fadilah, Y. (2019). The Effect of Mergers and Acquisitions on the Financial Performance of Non-Financial Companies Listed on the Indonesian Stock Exchange. Faculty of Economics, Indonesian Islamic University, Yogyakarta.
  10. Fiqri, AAA, Azzahra, MM, Branitasandini, KD, & Pimada, LM (2021). Opportunity and Challenges of Merger of State-Owned Sharia Banks in Indonesia during the Covid19 Pandemic. El Dinar, Vol. 9 , No. 1.
  11. Franciscus, Petrus., Hidayat Kadarisman., Iqbal Muhammad. (2015). Analysis Post-acquisition Multinational Company Financial Performance (Study On Acquisition Company Listed on IDX 2010- 2012). Journal of Business Administration (JAB), Vol. 1 , No. 1.
  12. Gitman, LJ & Chad JZ (2015). Principles of Managerial Finance e. London: Pearson Education.
  13. Noviani, M. & Hamidah. (2013). Comparison of Company Financial Performance Before and After Mergers and Acquisitions (In Acquisition Companies Listed on the Indonesia Stock Exchange Period 2004-2006). Indonesian Science Management Research Journal, Vol. 4, No. 1, 31-52.
  14. Hasanah, AN & Oktaviani, TM (2017). Analysis of Company Performance and Abnormal Stock Returns Before and After Acquisition. Journal of Accounting, Vol. 4, No. 2.
  15. Hitt et al. (2012). Strategic Management : Competitiveness And Globalization. Book 1. Jakarta: Salemba Empat.
  16. Kandil, T. & Chowdury , D. (2014). Islamic Banks' Mergers and Acquisitions –Impacts on Performance and Financial Crisis in the United Kingdom. In The Developing Role of Islamic Banking and Finance: From Local to Global Perspectives. Emerald Group Publishing Limited.
  17. National Sharia Finance Committee. (2019). Study of Conversion, Merger, Holding, and Formation of Sharia BUMN Banks. Jakarta.
  18. Long, PH (2015). Merger and Acquisition in The Czech Banking Sector: Impact of Bank Mergers on The Efficiency of Banks . Journal of Advanced Management Science, Vol. III, No. 2, 86-92.
  19. Mahesh, P. (2012). Post Merger and Acquisition Financial Performance Analysis : A Case Study of Select Indian Airlines Companies. International Journal of Engineering and Management Sciences, Vol. 3, No. 3, 362–369.
  20. Marzuki, MA (2013). Financial Performance Before and After Acquisition: Study at PT Bank CIMB Niaga. Journal of Management Science and Research, Vol. 1, No. 2, 222–238.
  21. Morina, T. and Nasir, M. (2018). Companies Before and After Mergers and Acquisitions (Study of Companies Carrying Out Mergers and Acquisitions Listed on the IDX 2013-2015). Journal Economic Resources, Vol. 1, No. 1.
  22. Nizar, MA & Nasir, M. (2016). Strengthening Sharia Banking through Merger or Consolidation. Acceleration and Inclusiveness of the Financial Sector: The Road to People's Welfare. Jakarta: Creative Media Nagakusuma.
  23. Financial Services Authority. (2014). Regulation of the Financial Services Authority Number 8/POJK.03/2014 concerning Soundness Rating of Sharia Commercial Banks and Sharia Business Units. Jakarta.
  24. Financial Services Authority. (2019). Regulation of the Financial Services Authority of the Republic of Indonesia Number 41/POJK.03/2019 Concerning Mergers, Consolidations, Acquisitions, Integrations and Conversions of Commercial Banks. Jakarta.
  25. Financial Services Authority. (2020). Financial Services Authority Regulation Number 12 /POJK.03/2020 concerning Consolidation of Commercial Banks. Jakarta.
  26. Financial Services Authority. (2021). Republic of Indonesia Financial Services Authority Regulation Number 12/POJK.03/2021 Concerning Commercial Banks . Jakarta.
  27. Permana, AB (2012). Bank Soundness Level Analysis Based on CAMELS Method and RGEC Method. AKUNESA Accounting Journal, Vol. 1, No. 21.
  28. Putra, MW, Dervish , D., & Priandika, AT (2021). Financial Performance Measurement Using Financial Ratio Analysis as a Basis for Financial Performance Assessment (Case Study: CV Sumber Makmur Abadi, Central Lampung). Scientific Journal of Accounting Information Systems (JIMASIA), Vol. 1, No. 1, 48-59.
  29. Putra, Mirza Wijaya, Dedi Darwis, and Adhie Thyo Priandika. 2021.
  30. Setyarini, Adhista. (2020). Analysis of the Influence of CAR, NPL, NIM, BOPO, LDR on ROA (Study of Regional Development Banks in Indonesia 2015-2018 Period). Research Fair Unisri, Vol. 4, No. 1 .
  31. Siregar, ES & Sissah. (2021). Analysis of the Impact of Merger Policy in the Development of Islamic Banks in Indonesia. Journal of Islamic Economics, Accounting and Banking, Vol. 5, No. 1.
  32. Suad Husnan and Enny Pudjiastuti. (2012). Fundamentals of Financial Management, Sixth Edition. Yogyakarta: UPP STIM YPKN.
  33. Sugiyono. (2016). Quantitative Research Methods, Qualitative, and R&D . Bandung: Alphabet Publisher.
  34. Sumantri, FA & Agustianti, I. (2017). Financial Performance, Abnormal Return Before and After Merger Announcement. Journal of Economics and Business Buddhi Dharma University, Vol. 1, No. 1.
  35. Wei, C., Nneka, UO, & George, N. (2021). The Impact of Mergers and Acquisitions on the Financial Performance of Ecobank Ghana Limited. Journal of Accounting Finance and Auditing Studies (JAFAS), Vol. 7 , No. 3.
  36. Wibisono, Muhammad Yusuf & Wahyuni, Salamah. (2017). The Influence of CAR, NPF, BOPO, FDR, on ROA Mediated by NOM. Journal of Business & Management, Vol. 17, No. 1.
  37. Widoatmodjo, S. (2012). The Healthy Way to Invest in the Capital Market. Jakarta: PT. Alex Media Komputindo.
  38. Yadav, S., & Jang, J. (2021). Impact of Merger on HDFC Bank Financial Performance: A CAMEL Analysis Approach. International Journal of Economics and Finance . Vol. 13 , No. 8.

Open Access Copyright (c) 2022 At-Taqaddum
Creative Commons License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
At-Taqaddum
Published by Lembaga Penjaminan Mutu
Universitas Islam Negeri (UIN) Walisongo Semarang
Jl. Walisongo No.3-5 Semarang 50185, Indonesia
Phone: +62 857-1999-1679
Website: https://lpm.walisongo.ac.id/
Email: attaqaddum@walisongo.ac.id 
 
ISSN: 1979-4703 (p)
ISSN: 2527-9726 (e)
DOI : 10.21580/at

Lisensi Creative Commons
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

 
apps