A study on the short-run performance of companies that went public between 2006 to 2012: A Pre-IPO and Post-IPO analysis

• Main Authors: Balboa, Ronnel G., Mamangun, Karl Daniel P., Ozaeta, Lenard Jan R., Rayos, Gabriel C.
• Format: text
• Language: English
• Published: Animo Repository 2015
• Subjects: Financial institutions > Philippines
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/7685
• Institution: De La Salle University

This paper examines the performance of 20 companies before and after going public in the Philippines from 2006-2012. This study has been conducted in line with the curiosity of the researchers as to: (1) what are the significant factors or variables that affects the performance of firms that undergo initial public offering (IPO) and (2) how weighty these factors are in affecting the performance of the companies. In the pre-IPO year vs. post-IPO year comparison, Return on assets (ROA) and capital expenditure growth (CEG) were the only ratios that increased while the rest of the ratios namely return on sales (ROS), sales to assets (S/A), sales growth (SG), and total debt ratio (TDR) all declined. Using ordinary Least Squares (OLS), the results showed that in the regression analysis for the return on assets (ROA), the only significant factors are Sales and Total Debt Ratio which are significant in the 5% significance level, and capital expenditure which is significant in the 10% significance level. In addition, the results of the ROA vs ownership and the ROS vs ownership models provided the same list of significant factors: age, size, and sales growth.