IMPACT OF MERGERS AND ACQUISITIONS ON ACQUIRING FIRMS'FINANCIAL PERFORMANCE IN INDONESIA DURING COVID-19 (2020-2022)

Abstract

This study analyzes the impact of mergers and acquisitions (M&A) on the financial performance of 15 non-financial companies listed on the Indonesia Stock Exchange that conducted acquisitions during the COVID-19 pandemic (2020-2022). Based on efficiency theory, this research examines whether M&A transactions created synergy and added value for shareholders during economic instability. Using a quantitative comparative method with three-year pre- and post-acquisition comparison, data were tested with the Wilcoxon Signed Rank Test. Results indicate that profitability significantly declined post-M&A, while liquidity and solvency did not change significantly. These findings suggest acquisitions during the crisis were driven more by non-synergy motives such as empire building. For practitioners and investors, M&A decisions during economic uncertainty require more careful target evaluation. M&A is not an instant solution for corporate growth during a crisis without comprehensive synergy analysis.