Abstract

PThe selection of a business strategy in a company is critical to its success. Business strategies can be implemented to make the company more competitive than other companies. Mergers and acquisitions are business strategies that companies use to survive and grow. The aim of this study is to analyze the effect of profitability, dividend policy, and debt policy on investor decisions in companies that are undergoing mergers and acquisitions. The population of this study is mergers and acquisitions companies listed on the Indonesia Stock Exchange (IDX) between 2016 and 2020. This study's sample consisted of mergers and acquisitions companies selected through a purposive sampling methods, yielding 53 companies as the sample. The data use in this study is analyzed using multiple linear regression. According to the findings of this study, profitability and debt policy do not affect on the decisions of investors in companies that conduct mergers and acquisitions, meanwhile dividend policies affect on the decisions of investors in companies that conduct mergers and acquisitions.

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call

Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.