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

Date of Publication

2015

Document Type

Bachelor's Thesis

Degree Name

Bachelor of Science in Management of Financial Institutions

College

Ramon V. Del Rosario College of Business

Department/Unit

Financial Management

Thesis Adviser

Kristine Mae Lagdameo

Defense Panel Chair

Frederick Ronero

Defense Panel Member

Denmark Alarcon

Mar Andriel Umali

Abstract/Summary

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.

Abstract Format

html

Language

English

Format

Print

Accession Number

TU20489

Shelf Location

Archives, The Learning Commons, 12F, Henry Sy Sr. Hall

Physical Description

leaves ; 28 cm. + ; 1 computer optical disc.

Keywords

Financial institutions--Philippines

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