Impact pre and post merger and acquisition Sapurakencana Petroleum Berhad towards shareholder return

This study examines the impact of mergers and acquisitions (M&A) on the financial performance of SapuraKencana Petroleum Berhad (SKPetro Berhad), a management strategy known to affect the Malaysian financial services industry (as seen in the failed 2014 merger attempt between CIMB, RHB Capital, and MBSB). The research objective is to investigate the change in financial ratios during the pre- and post-M&A periods of SKPetro Berhad. The study uses monthly data covering two periods: pre-M&A (July 25, 2007, to January 25, 2011) and post-M&A (July 25, 2012, to January 25, 2016). The analysis employs a multiple regression model using the Ordinary Least Square (OLS) method. The variables used to measure financial performance are a total of three financial ratios: Return on Equity (ROE), Current Ratio (for liquidity), Net Profit Margin (for profitability), and Debt Ratio (for leverage).