Jurnal Ilmu Keuangan dan Perbankan (JIKA)

Volume XX Nomor X (Bulan Tahun)

E-ISSN: 2338-292X (Online) P-ISSN: 2086-0455 (Print)
E-mail: jika@email.unikom.ac.id
Website: https://ojs.unikom.ac.id/index.php/jika

ANALYSIS OF COMPANY FINANCIAL PERFORMANCE BEFORE AND

AFTER INITIAL PUBLIC OFFERING (IPO)

Gevira Lovia Anjani1 , Mochammad Radiva Dwi Putra2,

Rizky Gustia Supriatna3, Dimas Maula Hasbi4, Dito Rinaldo5*
dito.rinaldo@ekuitas.ac.id 5*

Sekolah Tinggi Ilmu Ekonomi Ekuitas, Jl. P.H.H. Mustofa No. 31, Kota Bandung, Jawa Barat, Indonesia

Received Date :
Revised Date :
Accepted Date :

ABSTRACT
This study aims to analyze changes in the financial performance of technology-based
companies before and after conducting Initial Public Offering (IPO) in 2013-2021. The
samples used in this study include 22 technology-based companies that have conducted
IPOs. The variables used in this study are Current Ratio Assets (CR), Total Assets Turn Over
(TATO), Debt to Equity Ratio (DER), and Return On Equity (ROE), with hypothesis testing
using paired sample T-test. The results of the analysis show that Current Ratio (CR) and
Debt to Equity Ratio (DER) one year before and one year after the company conducts an
IPO have a significant effect on financial performance, while Total Assets Turn Over (TATO)
and Return On Equity (ROE) do not experience significant changes. The results of this study
are expected to provide insight into the impact of IPOs on the financial performance of
technology companies and become a reference for investors, company management, and
researchers interested in IPOs and the technology sector.

Keywords : Initial Public Offering, financial perfomance, technology

company

ABSTRAK
Penelitian ini bertujuan untuk menganalisis perubahan kinerja keuangan perusahaan
berbasis teknologi sebelum dan sesudah melakukan Initial Public Offering (IPO) pada
tahun 2013-2021. Sampel yang digunakan dalam penelitian ini adalah 22 perusahaan
berbasis teknologi yang telah melakukan IPO. Variabel yang digunakan dalam penelitian
ini adalah Current Ratio Assets (CR), Total Assets Turn Over (TATO), Debt to Equity Ratio
(DER), dan Return On Equity (ROE), dengan pengujian hipotesis menggunakan uji T-test
berpasangan. Hasil analisis menunjukkan bahwa Current Ratio (CR) dan Debt to Equity
Ratio (DER) satu tahun sebelum dan satu tahun setelah perusahaan melakukan IPO
berpengaruh signifikan terhadap kinerja keuangan, sedangkan Total Assets Turn Over
(TATO) dan Return On Equity (ROE) tidak mengalami perubahan signifikan. Hasil
penelitian ini diharapkan dapat memberikan wawasan mengenai dampak IPO terhadap
kinerja keuangan perusahaan teknologi dan menjadi referensi bagi investor, manajemen

Jurnal Ilmu Keuangan dan Perbankan (JIKA) 1

 Jurnal Ilmu Keuangan dan Perbankan (JIKA)
Volume XX Nomor X (Bulan Tahun)
E-ISSN: 2338-292X (Online) P-ISSN: 2086-0455 (Print)
E-mail: jika@email.unikom.ac.id
Website: https://ojs.unikom.ac.id/index.php/jika

perusahaan, dan peneliti yang tertarik dengan IPO dan sektor teknologi.

Kata Kunci : Penawaran Umum Perdana, kinerja keuangan, perusahaan

teknologi

Jurnal Ilmu Keuangan dan Perbankan (JIKA) 2

INTRODUCTION

The intensity of competition in the era of increasingly tight universal markets

makes investment an important thing. Companies are required to be able to maintain
their financial position properly. Investment decision is the process of selecting one or
more investment options in the form of tangible or intangible assets to achieve profitable
results. The world of capital markets is currently hot to talk about, both among young
investors and investors who have first plunged in the capital market. The decision to
invest is certainly an important thing in obtaining benefits. The fundamental thing in the
investment decision process is understanding the relationship pattern between the
expected return and risk of an investment.
One of the hot issues is corporate action that comes from initial public offering
activities or commonly known as Initial Public Offering (IPO). Initial public offering (IPO)
is an activity carried out by a company to obtain funds from the investor community by
selling shares or bonds. The activity of a company to sell its shares to the public through
the capital market is commonly referred to as a public offering. When a company sells its
shares for the first time it is called an Initial Public Offering (IPO) or by another name go
public. By going public in a company, it will get funds according to the needs of the
company.
Based on signal theory, it is explained that all information that has been
announced and published can be a signal for investors as a basis for making investment
decisions. If the IPO or Initial Public Offering announcement contains positive value, it is
expected to provide a reaction when the announcement is received by the market,
provide an overview of the company's future prospects and is expected to increase the
value of shares and become a branding event for a company.
Financial success is crucial for organizations, both internally and internationally.
Financial reporting is one of the most important keys to remember when discussing
company performance reviews. Annual results evaluation is closely related to
performance evaluation. The measurement of success allows companies to verify their
qualifications and performance. As a result, financial performance must be evaluated to
determine whether the organization is stable or not. If the financial statements are found
to be stable, then the company will be stable and ready to face the challenges of the next
era and increasing business competition. Financial performance is not only related to the
generation of significant profits, but also to the effectiveness in running the business. In

Jurnal Ilmu Keuangan dan Perbankan (JIKA) 94

accordance with the general perspective that companies that carry out IPOs, aim to gain
expansion in order to pay corporate debt or even succeed in earning profits for the
company. However, based on the research of Andayani, Wiksuana, and Sedana (2017),
the company's financial performance has a significant negative effect on firm value,
meaning that the debt owned by the company will increase the company's value.
Susilowati and Amanah (2013) concluded that the company's action to go public was
able to make a significant difference, while the results of Munisi's research (2017)
showed that ROA, ROE, ROCE showed no difference after the IPO, while sales to assets
showed significant differences after the IPO. Because of this, the author wants to know
more deeply whether IT-based companies that have carried out IPOs have increased or
decreased their financial performance?

RESEARCH METHOD

This study uses variables of liquidity ratio, activity ratio, leverage ratio,
profitability ratio before and after Initial Public Offering (IPO). The time period used is
one year before and one year after the IPO. The variables used in this study are:
Current ratio
Current ratio is a ratio used to describe the ability of the company's current assets
to pay the company's short-term liabilities or debts.
current assets
Formula: Current ratio (CR)= x 100%Total assets
current liabilities
Total assets turnover is a ratio measuring the company's ability to generate sales from its
total assets by comparing net sales with average total assets.
sales
Formula: Total assets turn over (TATO)= x 100%
total liabilities
Debt to equity ratio
Debt to equity ratio is a financial ratio that compares the amount of debt to the
company's equity.
total liabilities
Formula: Debt to equity ratio (DER)= x 100%
total equility
Return on Equity
Return on equity or ROE is a measure of the company's financial performance
calculated by dividing net income by shareholders' equity.
net income
Formula: Return on Equity (ROE)= x 100%
total equity
Data Collection Method
The objects to be studied in this study are companies that conducted Initial Public
Offering (IPO) on the IDX from 2013-2021. The data used in this study are secondary
data in the form of financial reports of IT companies listed on the Indonesia Stock
Exchange (IDX). The data taken in this study comes from the Indonesia Stock Exchange
(IDX) or the website of each company. The population of this study are IT companies that
conduct Initial Public Offering (IPO) on the IDX.
Data Analysis Method

Jurnal Ilmu Keuangan dan Perbankan (JIKA) 95

 Descriptive statistical analysis is a method of collecting statistical data by
describing or describing the data that has been collected without intending to make
general conclusions about the data.
Paired Sample t-Test
According to Widiyanto (2013: 35), paired sample t-test is one of the testing
methods used to assess the effectiveness of treatment, characterized by differences in the
average before and average after treatment.
The basis for making a decision to accept or reject Ho in this test is as follows.
1. If t count > t table and probability (Asymp.Sig) < 0.05, Ho is rejected and Ha is
accepted.
2. If t count < t table and probability (Asymp.Sig) > 0.05, Ho is accepted and Ha is
rejected.

RESULTS AND DISCUSSION

Table 1
Sample Criteria
No Sample Criteria Quantity
1 Technology-based companies listed for initial 32
public offering on the IDX in 2013-2021.
2 Technology-based companies that do not provide 5
complete financial statements one year before and
one year after the initial public offering.
3 Technology-based companies that only register in 5
2022/2023 so that their financial statements will
not be completed at the end of 2023.
Sample Quantity 22
This study used the SPSS 22 program with a significance value (α) of 5%.

Table 2
Before IPO
Variabel N Mean Std. Maximum Minimum
Deviation
CR 22 3,145771076 3,605901084 15,90305656 0,224710352
TATO 22 5,394779848 9,551350415 32,53912569 0,012272782
DER 22 1,9401564 2,237652121 7,641242267 0,097586738

Jurnal Ilmu Keuangan dan Perbankan (JIKA) 96

 ROE 22 0,185497614 0,678136096 3,261785036 -0,20672803

After IPO
Variabel N Mean Std. Maximum Minimum
Deviation
CR 22 9,25753971 11,84035308 2,509018896 0,167541286
TATO 22 2,48581442 3,185281587 11,19958555 0,01973571
DER 22 0,632256452 0,668956527 2,509018896 0,025227027
ROE 22 -
0,071573818 0,194828501 0,549117517 0,490230887

This study used the SPSS 22 program with a significance value (α) of 5%.

Based on the results of descriptive statistical analysis, Table 2 shows the

difference in mean results on each variable. The Company's financial performance
variable measured by CR has a mean value before the IPO of 3.145771076
(314.5571076%) increased after the IPO to 9.25753971 (925.753971%). The standard
deviation value before the IPO was 3.605901084 (360.5901084%) and after the IPO to
11.84035308 (1184.035308%). The minimum value of CR for the observation of PT
Solusi Sinergi Digital Tbk before the IPO was 0.224710352 (22.4710352%), while after
the IPO was 0.167541286 (16.7541286%) owned by PT Indointernet Tbk. The maximum
value of CR of PT M Cash Integrasi Tbk before IPO is 15.90305656 (1590.305656%),
while after IPO is 2.509018896 (250.9018896%) owned by PT Anabatic Technologies
Tbk.

The mean value of TATO before IPO was 5.394779848 (539.4779848%)

decreased to 2.48581442 (248.581442%) after IPO. The standard deviation value before
the IPO was 9.551350415 (955.1350415%), after the IPO to 3.185281587
(318.5281587%). The minimum value of TATO before the IPO of PT Hansei Davest
Indonesia Tbk was 0.012272782 (1.2272782%), while after the IPO the minimum value
of TATO was 0.01973571 (1.973571%) owned by PT Bukalapak.Com Tbk. The maximum
value before the IPO of PT Hansei Davest Indonesia Tbk was 32,53912569
(3253,912569%), while PT Trimegah Karya Pratama Tbk after the IPO decreased by
11,19958555 (1119,958555%).

The mean value of DER decreased from 1.9401564 (194.01564%) to

0.632256452 (63.2256452%). The standard deviation value before the IPO was
2.237652121 (223.7652121%) to 0.668956527 (66.8956527%) after the IPO. The
minimum value of DER of PT Global Sukses Solusi Tbk before the IPO was 0.097586738
(9.7586738%), while after the IPO it was 0.025227027 (2.5227027%) owned by PT Wira
Global Solusi Tbk. The maximum value before the IPO of PT Distribusi Voucher
Nusantara Tbk was 7.641242267 (764.1242267%), while after the IPO it was
2.509018896 (250.9018896%) owned by PT Anabatic Technologies Tbk.

Jurnal Ilmu Keuangan dan Perbankan (JIKA) 97

 The mean value of ROE decreased from 0.185497614 (18.5497614%) to
0.071573818 (7.1573818%). The standard deviation value before the IPO from
0.678136096 (67.8136096%) to 0.194828501 (19.4828501%) after the IPO. The
minimum ROE value of PT Tourindo Guide Indonesia Tbk before the IPO was -
0.20672803 (-20.672803%), and after the IPO -0.490230887 (-49.0230887%) owned by
PT Tourindo Guide Indonesia Tbk. The maximum value before the IPO of PT Galva
Technologies Tbk was 3.261785036 (326.1785036%), while the maximum value after
the IPO owned by PT Bukalapak.Com Tbk became 0.549117517 (54.9117517%).

HYPOTHESIS TEST
Paired Simple T-test
Based on table 2, the paired sample t-test shows different results on each variable.
The results of hypothesis testing on current ratio (CR), debt to equity ratio (DER)
variables show significant results before IPO on variables after IPO.

Table 3
Paired Sample T-test
Sig. (2-
Variabel T Summary Description
tailed)

There is a
CR -2,423 0,025 H1 accepted
difference

No
TATO 1,508 0,146 HI rejected
Difference

There is a
DER 3,046 0,006 H1 accepted
difference

No
ROE 0,772 0,449 H1 rejected
Difference

Source: Results of data processing using the SPSS 22.0 program

In the Total Assets Turn Over (TATO) and Return On Equity (ROE) variables, after
conducting an IPO, there is no significant difference.

Jurnal Ilmu Keuangan dan Perbankan (JIKA) 98

Table 4
Mean and Nilai Sig Variabel
Ratio Sig. (2-tailed) Mean
Before After
Current Ratio (CR) 0,025 3,145771076 9,25753971
Total Assets Turn Over
(TATO) 0,146 5,394779848 2,48581442
Debt To Equity Ratio
(DER) 0,006 1,9401564 0,632256452
Return On Equity (ROE) 0,449 0,185497614 0,071573818
Source: Results of processed data using the SPSS 22.0 program
From the processed data that has been done on 22 companies against the first
hypothesis, it shows that the liquidity ratio proxied by using the current ratio shows a
significant difference after the IPO, supported by the results of SPSS research with a Sig
value of 0.025, smaller than 0.05 (α = 5%). When viewed from the results of the mean
value, CR experienced a very significant increase from 3.145771076 (314,5771076%)
increased to 9.25753971 (925,753971%). From these results, it shows that by
conducting an IPO, the company has the opportunity to get funds so that the company
can increase the company's liquidity without disrupting the company's operational
activities. This is evidenced by the results of the researchers showing that their research
states that there is a significant difference in the company's financial performance after
the IPO. They explained that by doing an IPO, the company affects the company's
liquidity level.
The results of the second hypothesis show that the activity ratio proxied by total
assets turnover, that the company's financial performance before the IPO and after
conducting the IPO has no significant difference. This is shown from the results of SPSS
research with a Sig value of 0.146 greater than 0.05 (α = 5%). It is shown that by doing an
IPO, there has been no significant change in the company's financial performance. This is
because the mean TATO value is still above 1, indicating that the proportion of total debt
is still greater than equity. This is supported by researchers who see no significant
difference after conducting an IPO, but the average results decrease after the IPO. The
data obtained explains that the decrease causes an increase in firm value, meaning that

Jurnal Ilmu Keuangan dan Perbankan (JIKA) 99

the company is able to repay long-term debt and the decision to increase debt will have a
positive impact on the company.
From the results of testing the third hypothesis, it shows that the leverage ratio
proxied by the debt to equity ratio shows that the financial performance before the IPO is
different after the IPO, it is shown from the results of SPSS research with a Sig value of
0.006 smaller than 0.05 (α = 5%). When viewed from the mean DER which decreased
from 1.9401564 (194.01564%) to 0.632256452 (63.2256452%), this shows that after
the IPO the company's activity decreased when viewed from the total equity ratio,
meaning that the company's hope to increase company activity has not been realized.
From the results of the fourth test, it shows that the probability ratio proxied by
using return on equity shows that the financial performance before the IPO and after
conducting the IPO has no significant difference. This is supported by the results of SPSS
research with a sig value of 0.499 equal to 0.05 (5%), with these results indicating that
there is no significant difference after conducting an IPO. Judging from the mean results,
ROE has decreased from 0.185497614 (18.5497614%) to 0.071573818 (7.15738185%).
It shows that after the company conducts an IPO, the company's profitability decreases,
due to the increase in the company's own capital obtained from the sale of shares during
and after the IPO. This is also supported by the results of researchers that the company's
action to go public is able to make a significant difference after the IPO.

CONCLUSION

Based on the results of this study, only the liquidity ratio (Current Ratio) and
leverage ratio (Debt of Equity Ratio) experienced significant changes after technology-
based companies conducted Initial Public Offerings. An increase in the mean value of the
Current Ratio indicates that the company has more liquid assets to fulfill its obligations,
which could be a positive indicator for investors or other stakeholders, while a decrease
in the Debt of Ratio value indicates that the company has successfully reduced its
leverage level, which could be a positive signal for investors as it indicates a decrease in
financial risk.

RECOMMENDATION

Referring to the results of this study, there are several suggestions that can be
given. To optimally utilize IPO proceeds, companies should pay off their long-term debt.
This will help improve the capital structure and lower the leverage level, which in turn
can increase investor confidence. In addition, the company also needs to monitor and
Jurnal Ilmu Keuangan dan Perbankan (JIKA) 100
manage its liquidity better. Even though liquidity has improved, there is still a need to
maintain it at an optimal level.

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