Puspita Rani Assesses Long-Term Performance and Profit Quality Based on Motives and Disclosures
Nino Eka Putra ~ Humas FEB UI
DEPOK – Graduate Program in Accounting, Faculty of Economics and Business, University of Indonesia held an open session of the Promotion of Doctoral Puspita Rani (1206310083) which took place at the Postgraduate Auditorium, Postgraduate Building, on Monday (1/13/2020).
The Doctoral Promotion Session was chaired by Prof. Nachrowi Djalal Nachrowi, Ph.D., with his supervisor, Dr. Darminto (Promoter), Elvia Rosantina Shauki, Ph.D. (Co-Promoter 1), and Ir. Ruslan Prijadi, Ph.D. (Co-Promoter 2). As the testing team, Dr. Sylvia Veronica NPS (Chief Examiner), Prof. Dr. Roy Sembel, Dr. Budi Frensidy, Dr. Gede Harja Wasistha, and Dr. Eugenia Mardanugraha.
The dissertation raised by Promovendus, entitled “Analysis of Long-Term Performance and Profit Quality of Post-Merger and Acquisition of Companies in Asia Based on Motives and Disclosures, Moderated by Corporate Governance”. This dissertation discusses the impact of different M&A motives on long-term performance and the quality of corporate earnings after M&A and the role of corporate governance moderation, both at the company and country level on the relationship between M&A motives and long-term performance.
In addition, this study also analyzes the effect of M&A motives on the level of disclosure of M&A transactions and the impact of these disclosure levels on the long-term performance and profit quality of post-M&A companies. “This research focuses on separating perceptions of M&A motives from investors into synergy and agency motives based on investors’ reactions when the M&A announcement is made,” Puspita Rani said.
The use of accounting variables related to characteristics in predicting groups of M&A motives is also an alternative measure of additional M&A motives used in this study. Meanwhile, this research was carried out across countries using a sample of M&A cases that occurred in 11 Asian countries during the period 2002 to 2012.
He continued, using the ordinary least square cross-sectional method, the results of the analysis showed that differences in motives in M&A decisions were an important factor explaining the long-term difference in performance produced by companies after M&A, namely M&A motivated by synergy to produce better performance than agency M&A , and corporate governance mechanism applied by the company is proven to be able to maximize the positive impact.
Other findings from this study indicate that the M&A motive is also an important factor explaining the level of disclosure of M&A information which is then proven to improve the quality of a company’s earnings post M&A. “This study cannot prove the significant influence between M&A motives on earnings quality, the effect of the level of M&A disclosure on long-term performance and the moderating role of corporate governance at the country level,” he concluded.
Thus, the Leadership Council of the open session of doctoral promotion decided, Puspita Rani (1206310083) was declared graduated with the title of Very Satisfactory and succeeded in obtaining the 72nd Doctorate in Accounting. Congratulations to Dr. Puspita Rani! (Des)
