ANALYSIS OF THE FINANCIAL PERFORMANCE OF COMPANIES BEFORE AND AFTER THE INITIAL PUBLIC OFFERING (IPO) LISTED ON THE INDONESIAN STOCK EXCHANGE (BEI) FOR THE PERIOD OF 2020

Abstract

The purpose of this study is to test whether there is a significant difference in the company's financial performance before and after the Initial Public Offering (IPO) through financial ratio analysis. The financial ratios that will be used are Liquidity Ratio, Solvency Ratio, and Profitability Ratio. Liquidity Ratio is used to measure the company's ability to meet short-term obligations. Solvency Ratio is used to assess the company's ability to meet short-term and long-term debt obligations. While the Profitability Ratio is used to see the company's ability to profit from its operations. This research will be conducted by taking a population of stocks listed on the Indonesia Stock Exchange (IDX) in the 2020 period. Sampling is done by purposive sampling method, where the selected companies have financial reports for the period before the IPO (2017, 2018, and 2019) and after the IPO (2021, 2022, and 2023).