DO THE COMPANY GET HIGHER PROFITABILITY AFTER INITIAL PUBLIC OFFERING (IPO)?

Abstract

The Indonesia Stock Exchange is a place that facilitates the investors and issuers in terms of investments. One of the steps that can be taken by the company to increase the company's capital is with Initial Public Offering (IPO). This research is examining the profitability of the company (net profit margin, operating profit margin, and return on equity) after the company IPO 2013-2017. We examine 45 companies who conduct the Initial Public Offering (IPO) in Indonesian Stock Exchange during 2013 until 2017. We used Wilcoxon signed rank method to catch the differences and analyze the data in three years before and three years after initial public offering (IPO). The research results show that after initial public offering, most of the company return on equity rises compared to before IPO.