Wulansari, Diaz Perdana, Analysis the Effect of Financial Statement Publication on the Stock Performance of PT Bank Syariah Indonesia Tbk. One Year after the Merger 209209 Analysis the Effect of Financial Statement Publication on the Stock Performance of PT Bank Syariah Indonesia Tbk. One Year after the Merger Wulansari, Diaz Perdana Magister Manajemen Teknologi, Institut Teknologi Sepuluh Nopember Surabaya East Java Indonesia e-mail: wulansarirachmat27@gmail.com; perdanadiaz@gmail.com Abstract: As the country with the world’s largest Muslim population, Indonesia has the potential to lead the Islamic finance industry. Increased public awareness of halal issues, as well as strong stakeholder support, are critical factors in the growth of Indonesia’s halal industry ecosystem. Islamic banks are included. BUMN Banks’ Sharia Banks, namely Bank Syariah Mandiri, BNI Syariah, and BRI Syariah, are no exception, having merged on February 1, 2021. The goal of this study was to see what effect the publication of quarterly financial statements had on the performance of PT Bank Syariah Indonesia’s stock price up to a year after the merger. This study employs secondary data and documentation techniques, with the analysis time period being each quarter in the annual period of 10 days after reporting financial publication reports and 10 days before reporting finan- cial publication reports. Stock prices from that time period, as well as several financial ratios from publicly available financial reports, were used as variables. To test the hypothesis itself, use a ratio scale and the comparative hypothesis method of two paired sample t-tests, as well as the Ryan- Joiner method to test for normality. If the significance value is 0.05 or greater, the data is said to be normally distributed. According to the results of the tests, there were significant differences in BRIS stock prices 10 days before and 10 days after the financial statements were published. Keywords: syariah bank, stock, banking performance, financial statements, merger A. INTRODUCTION A bank, according to Law No. 10 of 1998, is a business entity that collects funds from the com- munity in the form of savings and distributes them to the community in the form of credit and/or other forms to improve the living standards of many people. The bank acts as a “financial inter- mediary,” collecting and distributing public funds as well as providing other payment-related ser- vices. In the Indonesian banking system, there are two types of banking operating systems: conven- tional banks and Islamic banks. Sharia Bank, ac- cording to Law No. 21 of 2008 on Sharia Bank- ing, is a bank that conducts business activities based on Sharia principles, or Islamic law prin- ciples regulated in the fatwa of the Indonesian Ulema Council, such as the principles of justice and balance (‘adl wa tawazun), welfare (masla- hah), universalism (alamiyah), and does not con- tain gharar, maysir, riba, zalim, and other haram objects. Furthermore, the Islamic Banking Law entrusts Islamic banks with performing social functions such as baitul mal institutions, which receive funds derived from zakat, infaq, alms, grants, or other social funds and distribute them to the waqf manager (nazhir) according to the will (wakif). With the significant increase in demand for sharia-based products and services in Indonesia over the last few years, the government has identified this as a watershed moment in the country’s sharia economy. By these optimistic circumstances, on Feb- ruary 1st, 2021, the government finally merged Business and Finance Journal, Volume 7, No. 2, October 2022 210 the three lists of large Islamic banks created by state-owned enterprises, namely PT Bank Syariah Mandiri, PT Bank BNI Syariah, and PT Bank BRI Syariah Tbk., into a new intensity known as Bank Syariah Indonesia or BSI. The Financial Services Authority (OJK) launched the estab- lishment of BSI with a letter. Letter issued under the number: SR-3/PB.1/2021 regarding the granting of permits for the merger of PT Bank Syariah Mandiri and PT BNI Syariah into PT Bank BRI Syariah Tbk., as well as permits to change name by using PT Bank BRI Syariah Tbk. business license into a business license on behalf of PT Bank Syariah Indonesia Tbk. with the stock code BRIS as the merged bank. With the issuance of this letter from the OJK, it further strengthens BSI’s position to carry out banking activities based on the Sharia concept and the merger of the 3 forming banks. The following are some of the goals of BSI’s merger: (1) Effective synergies to improve Sharia Bank customers’ services. (2) Improving business processes. (3) Risk management, the current success of Bank Mandiri, which arose from the merger of four previous banks, dem- onstrates that banking risks can be reduced if three state-owned Islamic banks are combined into one. (4) Institutional resources: every agency and board of directors will be filled by profes- sionals who will work under one umbrella insti- tution with the same vision and mission. (5) Strengthening digital technology: in terms of technology, BSI has developed an online-based website and mobile application for Bank Syariah Indonesia, making it easier for the general pub- lic to access them. The reason for the merger of state-owned sharia banks is that Indonesia does not yet have a sharia bank with large assets and financing capabilities, despite the fact that the majority of the population is Muslim. BSI has achieved one year of post-merger performance, and investors will undoubtedly expect the company to perform well in the future; good performance will have an impact on the welfare of its shareholders. The company’s performance can be seen in its abil- ity to generate profits, with the hope that these profits will also be enjoyed by investors in the form of dividend payments, increasing the wel- fare of shareholders. This will be a strong enough draw for other investors to want to share in the company’s profits, causing these investors to invest in the company, affecting the demand for the company’s shares. Research on the comparative analysis of stock returns and stock trading volume before and after the merger has been carried out by (Pratiwi, Dwipradnyana, and Diatmika, 2021) which only took the observation period within a week after the merger. Based on the existing background, the research examined the com- parison of stock prices per quarter with a comparison to the announcement of PT Bank Syariah Indonesia’s financial performance per quarter until full year 2021 performance or a year after the merger. Table 1 Summary of PT Bank Syariah Indonesia Financial Performance Q1 Q2 Q3 Q4 Financing Growth 14.74% 3.18% 7,38% 9.32% FDR 77,28% 74,53% 74,45% 73,39% NI 6,13% 6,29% 6,00% 6.04% CIR 79,90% 79,92% 79,84% 80.46% NPF nett 0,92% 0,93% 1,02% 0.87% Spec Mention 2.40% 3,18% 2,93% 1.77% CAR 23,10% 22,58% 22,75% 22.09% ROE 14,12% 13,84% 13,82% 13,71% ROA 1,72% 1,70% 1,70% 1,61% Ratio's Financial Performance 2021 The purpose of the study, “ Analysis The Effect of Financial Statement Publication on the Wulansari, Diaz Perdana, Analysis the Effect of Financial Statement Publication on the Stock Performance of PT Bank Syariah Indonesia Tbk. One Year after the Merger 211 the choices for company’s funding. Moreover, stock is investors’ most favorites investment instrument because it offers them an interesting return rate. Stock can be defined as a sign of capital participation of an individual or institution in a company or corporation. By investing in a com- pany, the party has the claim for the company’s income, assets, and right to attend the General Meeting of Shareholders. Basically, there are two benefits the investor can get by buying or having stock: (1) Dividend, dividend is profit sharing given by company and comes from the income. Dividend is given after getting the agree- ment from shareholders in the General Meet- ing. If an investor wants to receive dividend, he/ she must own the stock for a relatively long period, until the ownership term is in the pe- riod where he/she is acknowledged as the share- holder who has the right to obtain the dividend. (2) Capital gain, capital gain is the different between buying price and selling price. Capital gain is obtained through the trading activities carried out in the secondary market. For ex- ample, an investor buys ABC’s shares at Rp 3,000 per share and then sells it at Rp 3,500 per share. It means the investor gets capital gain of Rp 500 for every sold share. Besides benefits as investment instrument, stock also has risks: (1) Capital loss, it is the reverse of capital gain. It is a condition when the investor sells his/her shares at lower price than its buying price. For instance, PT XYZ’s shares are bought at Rp2,000 per share, but aftermath the stock price experiences decrease to the level of Rp 1,400 per share. Afraid of continuous declines, the investor sells the shares at price of Rp 1.400. The investor has retained a capital loss of Rp 600 per share. (2) Liquidity risk, a company, whose shares are owned by Stock Performance of PT Bank Syariah Indone- sia Tbk. One Year After the Merger,” was to: 1. Examine how the BRIS stock price moves before and after the quarterly financial state- ments are released. 2. Investigating the significance of the differ- ence in BRIS stock prices before and after the release of the financial statements. There was an increase on the share return after the financial report publication, this fact proved that there was information content in the financial report publication (Susilo, Djiwanto, & Jaryono, 2004) 3. Define others cause of stock price changes that are not attributable to the rights issue. (Pratama & Sudhiarta,2014) 4. Earnings releases have little influence on anomalous stock returns. This is due to the fact that profits information is just a tiny portion of the information (Virginia, Manurung, Muliawati, 2012), which is why the complete financial statement is required to test. By these purposes, the research hypothesis this time is: H 0 : There is no significant difference in BSI’s stock price for 10 days before and after the quarterly financial report’s publication. H 1 : There is a significant difference in BSI’s stock price for 10 days before and after the quarterly financial report’s publication. If the significance value (p-value) is smaller than the real level (� = 0.05) H 0 will be rejected and the alternative hypothesis (H 1 ) accepted. B. LITERATURE REVIEW Shares (stocks) is one of the most popular financial instruments. Issuing stock is one of Business and Finance Journal, Volume 7, No. 2, October 2022 212 public, is stated for bankruptcy by the court or is being dismissed. In this case, the claiming rights of shareholders get the last priority after all the company’s liabilities are settled (by gath- ering the fund from selling the company’s as- sets). If there is an amount of rest of the company’s wealth, it will be shared proportion- ally to the shareholders. But, if there is no rest left, the shareholders will not receive anything out of the liquidation. This is the worst condi- tion that might happen to shareholders. For that reason, a shareholder needs to observe every development in the company, which shares are owned. In secondary market or daily shares trading activities, stock prices fluctuate, either increase or decrease. Prices are formed from the demand and supply of the stock. In other words, prices are formed by supply and de- mand. Supply and demand are influenced by many factors, either by specific factors such as the company and industry’s performance where the stocks exist or macro factors such as the interest rate, inflation, currency rate, and non- economic factors like social and political condi- tions, and so on. C. RESEARCH METHODOLOGY The purpose of the study, “Analysis the Effect of Financial Statement Publication on the Stock Performance of PT Bank Syariah Indone- sia Tbk. One Year After the Merger,” was to examine how the BRIS stock price moves be- fore and after the quarterly financial statements are released and investigating the significance of the difference in BRIS stock prices before and after the release of the financial statements. These study purposes are also to prove finan- cial statements are significant and fundamental variables to test the effect to price stock perfor- mance (Cahyani, Simanjuntak, dan Hutadjulu, 2016). Financial reports generated by corpora- tions and conveyed to other parties, such as investors, are anticipated to provide informa- tion value that may be utilized by investors in making investment choices. The data used is secondary data, which is historical data from closing real-time stock prices. The following are the cut-off dates for each quarter: 7 May 2021 for Q1, 30 July 2021 for Q2, 29 October 2021 for Q3, and 28 January 2022 for Q4. The documentation tech- nique is used to collect data. BRIS share price data is obtained from the Indonesia Stock Ex- change website, which can be found at https:// www.idx.co.id/. So the variable used is the BRIS stock price 10 days before and 10 days after the quarterly financial statements are published, for a total of 80 data points. The information gathered was analyzed using Microsoft Excel and Minitab Statistical Software. The descrip- tive statistical analysis technique was used, fol- lowed by hypothesis testing paired sample T- test. D. RESULT AND DISCUSSION 1. Descriptive Statistics The data processing results from BRIS issuers’ share prices 10 days before and 10 days after the release of quarterly financial state- ments are shown Table 2. Table 2 shows the descriptive statistics for each variable that was used. Each quarter, the amount of data used is BRIS share price for 10 days before and 10 days after the publication of the financial statements. The Ryan-Joiner nor- mality test was used to ensure that each vari- able was normal before processing. If the RJ Wulansari, Diaz Perdana, Analysis the Effect of Financial Statement Publication on the Stock Performance of PT Bank Syariah Indonesia Tbk. One Year after the Merger 213 indicator is close to 1 then the data is said to be normal. All variables in the preceding data met these requirements. During the year 2021, the stock price tends to fall. There is an increase in the second quarter, but it then falls and start increase again in fourth quarter. 2. The Hypothesis Test The results of the paired sample T-test are shown as follows. The significance value (p-value) for the four pairs of BRIS stock prices after and before the publication of the financial statements is 0.000 to 0.005, which means it is less than 0.05, based on the paired sample T-test results shown in Table 2. This means that stock prices differ significantly before and after the release of financial statements. In the Q1-Q3 publication period, the mean value of the difference in stock prices before and after the publication of the financial state- ments is positive, indicating that the stock price after the publication of the quarterly financial statements is lower than before the publication. Figures 1–4 show the graph of stock prices for that time period. Although the mean value is always positive, it shows a downward trend Variable N Mean SE Mean Std Dev Minimum Median Maximum RJ Indicator Before Q1 10 2287 17.70 56.00 2220 2280 2420 0.930 After Q1 10 1977 56.80 179.60 1760 1915 2280 0.954 Before Q2 10 2622 44.10 139.30 2390 2615 2820 0.984 After Q2 10 2493 49.60 156.80 2250 2525 2700 0.974 Before Q3 10 2149 16.00 50.70 2080 2145 2250 0.964 After Q3 10 2077 3.67 11.60 2060 2080 2090 0.997 Before Q4 10 1531 9.21 29.10 1495 1528 1585 0.966 After Q4 10 1619 16.40 52.00 1545 1630 1675 0.958 Table 2 Data Processing Outcomes from BRIS Issuers’ Share Prices Mean StDev SE Mean Lower Upper Sig. (p-value) 10 Days Before Q1 Publication 10 Days Before Q1 Publication 10 Days Before Q2 Publication 10 Days Before Q2 Publication 10 Days Before Q3 Publication 10 Days Before Q3 Publication 10 Days Before Q4 Publication 10 Days Before Q4 Publication Pair 34.80 50.20 207.80 0.005 310.50 166.80 52.80 191.20 429.80Pair 1 Pair 2 129.00 110.20 95% CI for µ_difference 0.001 Pair 4 -88.00 56.90 18.00 -128.70 -47.30 0.001 Pair 3 72.00 49.40 15.60 36.70 107.30 0.000 Table 3 Paired Sample T-Test Result Business and Finance Journal, Volume 7, No. 2, October 2022 214 each quarter. This is possible because investors began to respond positively to the publication of BSI’s financial performance report in the third quarter, with BSI’s recording a 10.15% YoY increase in assets and BSI’s financing grow- ing by around 7.38% YoY. BSI’s also managed to keep its net financing quality (NPF) at 1.02%. BSI’s was able to record a solid performance during this period, posting a net profit of Rp2.26 Trillion, and 37.01% increase over the previous quarter’s net profit of Rp1.65 trillion. Figure 1 Stock Price Chart 10 Days Before and After Publication Q1 2021 Figure 2 Stock Price Chart 10 Days Before and After Publication Q2 2021 The mean value for pair Q4 is negative, indicating that the value after the publication of the stock price report is greater than the value before the publication of the report. This indi- cates that at the end of the year period, BSI’s demonstrated good performance, which in- creased investor confidence in the company’s ability to increase its capital. BSI was able to increase financing by 9.32 percent year on year in the 2021, performance publication report. In terms of quality, BSI recorded a net non-per- Wulansari, Diaz Perdana, Analysis the Effect of Financial Statement Publication on the Stock Performance of PT Bank Syariah Indonesia Tbk. One Year after the Merger 215 Figure 3 Stock Price Chart 10 Days Before and After Publication Q3 2021 Figure 4 Stock Price Chart 10 Days Before and After Publication Q4 2021 forming financing (NPF) of 0.87 percent in December 2021, which is improving from the Q3 financial performance position. BSI’s return on equity (ROE) increased to 13.71 percent based on the profitability ratio. Return on as- sets (ROA) increased to 1.61 percent as well. E. CONCLUSION In the 2021 Performance publication re- port, BSI was able to increase financing by 9.32% year on year. In terms of quality, BSI recorded a net non-performing financing (NPF) of 0.87% in December 2021, which is improv- ing from the position of Q3 financial perfor- mance. According to the profitability ratio, BSI’s return on equity (ROE) increased to 13.71%. Return on assets (ROA) increased to 1.61%. The stock value 10 days after publication is lower than the stock value 10 days before publication during the Q1-Q3 publication pe- riod. This is possible because investors are still Business and Finance Journal, Volume 7, No. 2, October 2022 216 waiting for BSI’s financial performance until the Full Year performance to see if the move- ment of financial ratios per quarter to one year of performance is sustainable, as evidenced by the stock price in the fourth quarter increasing 10 days after the publication of the annual financial statements. This study suggests that investors can add this BRIS issuer to their long-term investment portfolio because they have prospects and are able to make a quick recovery in line with national economic growth during the pandemic. For further research, it is expected to be able to compare the performance of PT Bank Syariah Indonesia Tbk. with other Islamic banks in order to be able to provide options for inves- tors who are interested in adding the Islamic banking sector to their investment portfolio with different analysis periods. F. REFERENCES Kementerian Hukum dan Hak Asasi Manusia. 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