#TITLE_ALTERNATIVE#

• Main Author: NENDYTA TEDJI (NIM 19005032); Pembimbing : Deddy P. Koesrindartoto, Ph.D., NESSA
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/16678
• Institution: Institut Teknologi Bandung

Convergence means coming from different direction to meet. In financial aspect, there is a need to converge in companies within the sectors and also inter-sectors in the countries market in order to reach a sectors and the inter-sectors target. If convergence is formed, there will be a good sign that the sector or the inter-sector is moving in the right direction.<p>Adjusting financial ratios to industry targets is an important research field in the finance literature. Financial research taken back from 50 years ago, have shown empirical evidence that suggests that companies do adjust their financial ratios to industry targets. Companies that are not converge do make adjustment in order to reach the industry target value.<p>In this project, the topic of the research is to test the hypothesis in the Indonesian market. The project will be using 100 companies. There will be four stages of measurements. First, the entire companies in the time frame from 2000 and 2007 with annual analysis. Second though forth will be using time frame from 2005 to 2007 with quarterly analysis with the entire companies, company within the industry, and company within the sub-industry. This study will use five ratio to determine the interconvergence, those ratios are: Quick Ratio, Current Ratio, Equity to Debt Ratio, Sales to Inventory Ratio, and Sales to Asset Ratio.<p>This study will determine if there is convergence in the entire company, company within the industry, and company within the sub-industry. It will also determine the speed of adjustment made through the ratios according. And last, this study will also determine the tendency of the financial behavior in the four stages of measurements.