SHORT-TERM IMPACT ANALYSIS OF INDIHOME ACQUISITION BY TELKOMSEL ON STOCK RETURNS WITH MARKET RETURN AS A CONTROL VARIABLE: ANALYSIS OF PROFITABILITY, LIQUIDITY, SOLVENCY, AND ACTIVITY BEFORE AND AFTER THE ACQUISITION AT PT TELKOM INDONESIA

Abstract

The development of the telecommunications industry in Indonesia has prompted companies to pursue strategic acquisitions to enhance operational efficiency and competitiveness. A significant event in this context is the acquisition of IndiHome by Telkomsel, a subsidiary of PT Telkom Indonesia. This study aims to examine the impact of this acquisition on the company’s financial performance, including profitability, liquidity, solvency, and activity, as well as its implications for PT Telkom Indonesia’s stock return. The research employs a quantitative approach using multiple regression analysis on a sample of 50 financial statements and stock data, supplemented with tests for normality, multicollinearity, autocorrelation, and heteroscedasticity to ensure model validity. The findings indicate that the acquisition of IndiHome by Telkomsel does not have a statistically significant effect on financial performance or stock returns individually, as ROA, current ratio, DER, TATO, and the acquisition dummy variable are not significant. Conversely, the market return variable demonstrates a positive and significant influence on stock returns, highlighting the dominant role of external market factors in determining the company’s share price. Simultaneously, internal and external variables together show a significant effect, but the primary contribution remains from the market. These results emphasize the importance for both the company and investors to pay attention to global market dynamics and market sentiment rather than relying solely on internal financial performance.

Keywords: acquisition, financial performance, stock return, market return, PT Telkom Indonesia