ANALYSIS OF FINANCIAL AND OPERATING PERFORMANCE BEFORE AND AFTER INITIAL PUBLIC OFFERING OF MINING COMPANIES AT INDONESIAN STOCK EXCHANGE

Abstract

Initial Public Offering (IPO) is a stock offering for the first time to the public. IPO is one of the methods used by companies to obtain additional capital that is useful for company development. This study aims to determine the company's operating performance and analyze company finances before and after the initial public offering of mining companies on the Indonesia Stock Exchange. This research is an event study with an observation window span of 2 years before the IPO and 2 years after the IPO in the 2017 - 2018 period. A total of 15 companies from 39 mining companies have met the requirements as research samples. Mining company financial ratios used as variables in this study are Current Ratio (CR), Debt Ratio (DR), Debt Equity Ratio (DER), Net Profit Margin (NPM), Return On Equity (ROE), Return On Asset (ROA) ), Cash Flow to Sales (CFS), Cash Flow On Assets (CFA). Hypothesis testing is done by testing because the data has an abnormal distribution in each pair. The test results show the CR variable has improved performance after the IPO. DR variable decreased performance after IPO. The company's NPM decreased after the IPO although in the second year it experienced an increase in performance, although not significantly. CFA experienced a decrease in performance after the IPO. While the DER, ROE, ROA and CFS ratios do not occur differences in performance before and after the IPO.