Paper Finance

International Journal of Business and Social Science

Vol. 2 No. 24 [Special Issue – December 2011]

ANALYSIS OF FINANCIAL PERFORMANCE IN A FORM OF FINANCIAL RATIO BEFORE

AND AFTER RIGHT ISSUE AT THE INDONESIA’S STOCK EXCHANGE (BURSA EFEK

INDONESIA)

Irham Fahmi

Faculty o f Economics

Syiah Kuala University

Banda Aceh, Indonesia

Mulia Saputra

School of Social Science

Universiti Sains Malaysia

Pulau Pinang, Malaysia

Abstract

The research goal is for analysis financial performance in form company financial ratio before and after right

issue is done in the companies that go public in Indonesia Stock Exchange to in 2008. The financial ratios as in

this research are liquidity, solvency, and profitability. The firm to be population in the of research consists 20

firms, financial report data required in this research included in 2006 -2007 ( two year after right issue) and

financial report in 2009-2010 (two year before right issue). While to statistic test used Wilcoxon matched -pairs

signed-ranks test. As hypothesis used in this research that is a significant difference between financial

performance before and after right issue. The result, shows there is differenly significant ratio of liquidity,

solvency, and profitability in two term of the year before (2006-2007) and two term of the year after ( 2000 and

2001) right issue . The liquidity happened to increase having a meaning two term of the year after of this right

issue caused by company get included of it fund addition of right issue. Solvency refers to create of solvency ratio

after right issue (2009-2010) but the in creating of it is different compared to period of 2006-2007. While the

profitability ratio, ther is no creasing at in the periode of 2009-2010 after right issue, because the very possible

use the fund to finance long term investment and to solvency the liabilities which dealine as well.

Keyword: Financial performance, Ratio liquidity, Solvency, Profitability, Right issue...