FINANCIAL PERFORMANCE AND COMPANY VALUE BEFORE AND AFTER INITIAL PUBLIC OFFERING: EVIDENCE FROM IPO COMPANIES ON IDX IN 2023

Abstract

This study was conducted to analyse whether there is a significant difference in company financial performance using liquidity ratio, solvency ratio, profitability ratio, and activity ratio, and company value using Q ratio, before and after their Initial Public Offering (IPO). Data obtained from 76 IPO companies listed in the Indonesia Stock Exchange (IDX) in 2023 and 1 year after IPO in 2024, and the data were analyzed using the Wilcoxon Signed Rank Test to compare and analyse the difference between the same companies in the two different periods. The result of this study shows that liquidity ratio, solvency ratio, and profitability ratio have a significant difference before and after IPO, and company value that is calculated using Q ratio also has a significant difference before and after IPO, meanwhile, activity ratio didn’t have a significant difference before and after IPO. This study provides additional empirical evidence on the effect on a company's financial performance and company value after conducting an IPO in the long term.