ANALYSIS OF THE FINANCIAL PERFORMANCE OF SELECTED SOUTH KOREAN ENTERTAINMENT COMPANIES BEFORE AND AFTER ACQUISITIONS

  • Galuh Kurnia Pertiwi
  • Imronudin
Keywords: Acquisition, Financial Performance, Financial Ratio

Abstract

An acquisition is quite common among big companies, including South Korean Entertainment companies. Where the acquisition was chosen in order to expand the market and improve the company's financial performance. This study aims to analyze whether there are significant differences in the financial performance of South Korean Entertainment companies between before and after the acquisition. Company performance is measured using financial Ratios: Return On Equity (ROE), Return on Assets (ROA), Net Profit Margin (NPM), Gross Profit Margin (GPM), Earning Per Share (EPS), Total Asset Turnover (TATO) and Fixed Asset Turnover (TATO). This research was conducted using a quantitative method, namely by collecting data from 4 entertainment companies that made acquisitions in the 2018-2022 period through the Korean Composite Stock Price Index (KOSPI), Korean Securities Dealers Automated Quotations (KOSDAQ) and through the company's official website. The non-parametric tests used are the Paired Sample t Test and the Wilcoxon Signed Ranks Test. The results of this study

shows that testing of 6 financial ratios namely ROE, ROA, GPM, EPS, TATO and FATO shows that there is no significant difference between before and after the acquisition while the NPM shows a significant difference between before and after the acquisition

Author Biographies

Galuh Kurnia Pertiwi

Universitas Muhammadiyah Surakarta, Surakarta, Indonesia

Imronudin

Universitas Muhammadiyah Surakarta, Surakarta, Indonesia

Published
2023-07-23