Open AccessFinancial Performance Analysis of SMEs Before and After Initial Public Offering (IPO) on the Indonesia Stock Exchange (IDX)
Author(s) -
Budi Wahyono
Publication year - 2018
Publication title -
bise : jurnal pendidikan bisnis dan ekonomi/bise : jurnal pendidikan bisnis dan ekonomi
Language(s) - English
Resource type - Journals
eISSN - 2579-728X
pISSN - 2548-8961
DOI - 10.20961/bise.v4i2.27016
Subject(s) - initial public offering , business , stock exchange , solvency , profitability index , market liquidity , valuation (finance) , sample (material) , finance , solvency ratio , accounting , financial system , chemistry , chromatography
SME funding needs have not been fully met. IPO is one of the efforts that can be done by SMEs to meet these funding needs. However, it is not yet known whether the financial performance of SMEs will increase after conducting an IPO. This study aims to analyze the financial performance of SMEs before and after the IPO. The sample of this study is SMEs that listed on the IDX in 2017, which is as many as five SMEs. SME financial performance is measured through three SME financial ratios, namely liquidity, solvency, and profitability. The paired sample t-test was used to compare the financial performance of SMEs before and after the IPO. The results showed that there is no significant difference in the financial performance of SMEs before and after the IPO. The results of this study provide recommendations for further research related to the valuation and performance of SME IPOs.