Do Cross Border Integrated Acquisition Really Create Value in Emerging Market?

The aim of the paper is to study the value created by foreign shareholders in Indonesia finance company industry over the period 2001-2015. We analysed the value creation of related and unrelated foreign shareholders by comparing the key financial performance. We analysed 7 micro key financial ratios (profitability, efficiency, growth, firm size, liquidity, solvency and asset quality). We use non parametric Mann Whitney and parametric panel data dummy regression. The empirical results show that finance companies owned by integrated foreign shareholders are better in efficiency, but lower in profitability, smaller in size, lower in liquidity and solvency