CHANGES IN ECONOMIC VALUE ADDED AND MARKET VALUE ADDED IN COMPANIES LISTED IN INDONESIA STOCK EXCHANGE BEFORE AND AFTER MERGERS AND ACQUISITIONS : AN EMPIRICAL STUDY

Objectives: to find out the empirical evidence of the differences in Economic Value Added (EVA) and Market Value Added (MVA) before and after the companies carry out mergers and acquisitions. Methods: the research method used is quantitative with a comparative study. The study sample included 17 companies listed on the Indonesia Stock Exchange in the year of observation, which is 2010 to 2012. The sample provisions were companies that merged and acquired conducted an Initial Public Offering (IPO) in the year before the company carried out mergers and acquisitions. The dependent variable used is Economic Value Added (EVA) and Market Value Added (MVA). Results: the means value of EVA companies before and after mergers and acquisitions respectively were 16.76 and 18.24. The mean MVA of companies before and after mergers and acquisitions respectively were 16.23 and 19.83. The significance of the increase in EVA and MVA of companies before and after mergers and acquisitions respectively were 0.831 and 0.309 (significance level α <0.05). Implications: the results of the study indicate that there was an increase in EVA and MVA after mergers and acquisitions. It will be better if the company can choose investments in the form of mergers and acquisitions that are able to produce high returns for investors. Therefore, performance appraisal with EVA and MVA can provide improved or good results