Multidiciplinary Output Research For Actual and International Issue (MORFAI)
Published January 17, 2026 | Version v1
Journal article Open

DOES IPO IMPROVE COMPANY FINANCIAL PERFORMANCE: THE CASE OF INDONESIA.

Description

This study aims to analyze the differences in financial performance of companies before and after an Initial Public Offering (IPO) in Indonesia. The study uses a quantitative approach with a comparative approach. The sample consists of companies that conducted an IPO on the Indonesia Stock Exchange in 2022, with an observation period of two years before the IPO (2020–2021) and two years after the IPO (2023–2024). The data used is secondary data obtained from the companies' annual financial reports. Financial performance is measured using liquidity ratios, leverage, profitability, activity, and asset growth. Analysis was conducted using nonparametric statistical tests to identify differences in financial performance before and after the IPO. The results show that an IPO causes significant changes in a company's financial performance, but the direction of these changes does not always indicate an increase. Most companies experienced a decline in profitability after the IPO, while asset growth tended to increase. These findings suggest that an IPO plays a more significant role as a means of funding and corporate growth rather than a direct determinant of improved financial performance. This study contributes to understanding the impact of an IPO on the financial performance of companies in Indonesia.

Files

2071+Aprilian+Lahamido.pdf

Files (280.3 kB)

Name Size Download all
md5:57d66531fc511b66d979feea41487c97
280.3 kB Preview Download

Additional details

References

  • Barokah, R., Hermina, T., & Ungkari, M. D. (2021). Analisis Kinerja Keuangan Perusahaan Sebelum dan Sesudah Go Public pada Perusahaan Sektor Properti yang Terdaftar di Bursa Efek Indonesia. Jurnal Wahana Akuntansi : Sarana Informasi Ekonomi dan Akuntansi, 6(1), 33. https://doi.org/10.52434/jwa.v6i1.1722 Debataraja, I. B., & Susatya, N. P. (2023). ANALISIS KINERJA PERUSAHAAN SEBELUM DAN SETELAH MELAKUKAN INITIAL PUBLIC OFFERING DI BURSA EFEK INDONESIA BERDASARKAN RASIO PROFITABILITAS. 8(4). Dewi, R. R., Ratnawati, A., & Anggraeni, L. (2024). Pengaruh IPO Terhadap Kinerja Keuangan, Good Corporate Governance dan Nilai Perusahaan Emiten Skala UKM di Bursa Efek Indonesia. Jurnal Aplikasi Bisnis Dan Manajemen. https://doi.org/10.17358/jabm.10.2.636 Ferdila, & Martina, S. (2022). PERBANDINGAN KINERJA KEUANGAN PERUSAHAAN SEBELUM DAN SESUDAH INITIAL PUBLIC OFFERING (IPO) PADA PERUSAHAAN MANUFAKTUR YANG TERDAFTAR DI BURSA EFEK INDONESIA. JRB-Jurnal Riset Bisnis, 6(1), 87–103. https://doi.org/10.35814/jrb.v6i1.4037 Giudici, G., & Vismara, S. (2021). IPOs and Entrepreneurial Firms. Foundations and Trends® in Entrepreneurship, 17(8), 766–852. https://doi.org/10.1561/0300000067 Haman, J., Lu, W., & Naidu, D. (2024). Earnings management in the post‐IPO years and their impact on the long‐run stock performance of foreign versus domestic IPO firms. Accounting & Finance, 64(3), 2871–2913. https://doi.org/10.1111/acfi.13239 Mazumder, S., & Saha, P. (2021). COVID-19: Fear of pandemic and short-term IPO performance. Finance Research Letters, 43, 101977. https://doi.org/10.1016/j.frl.2021.101977 Southam, C., Jiang, G. (Frank), Todd, J., & Tonkin, I. (2024). Impact of post-IPO investments on the long-term financial market performance of Japanese IPOs: A preregistered report. Pacific-Basin Finance Journal, 86, 102463. https://doi.org/10.1016/j.pacfin.2024.102463 Zhao, Y., Wang, N., Zhang, L., Sun, B., & Yang, Y. (2022). The greater the investor attention, the better the post-IPO performance? A view of pre-IPO and post-IPO investor attention. Research in International Business and Finance, 63, 101789. https://doi.org/10.1016/j.ribaf.2022.101789