Analysis of the Purpose of Use of Funds on the Performance of Companies Conducting Initial Public Offerings (IPO) in 2016-2020
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Dec 14, 2022
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Abstract
One of the objectives of a company conducting an IPO is to obtain long-term funding and short-term funding without being burdened by interest. As mentioned earlier, the company was founded for the company's sustainability in the long term related to capital such as acquisitions, investments, paying debts, expanding, and many others. Not only in the initial release of shares to the capital market, the ease of obtaining capital will also apply in the future. Several things can be done by companies after carrying out an IPO such as private placement, secondary offering, or through a limited public offering. The first hypothesis found that fixed asset investment partially has a significant effect on profitability. The second hypothesis found that working capital financing has a significant effect on profitability in IPO companies for the 2016-2020 period. The results of testing the third hypothesis found that investment in share of stock partially has a significant effect on profitability. The results of testing the fourth hypothesis found that dept repayment partially has no significant effect on profitability. And the results of testing the fifth hypothesis found that leverage has no significant effect on profitability
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How to Cite
Ayusari, M., Fajri Adrianto, & Mohamad Fany Alfarisi. (2022). Analysis of the Purpose of Use of Funds on the Performance of Companies Conducting Initial Public Offerings (IPO) in 2016-2020. Enrichment : Journal of Management, 12(5), 3933-3943. https://doi.org/10.35335/enrichment.v12i5.993
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Thakur, S., & Singh, D. R. a. (2012). Brand Image, Customer satisfaction and Loyalty Intention: Study in The Context of Cosmetic Product among of The People of Central India. EXCEL International Journal of Multidisciplinary Management Studies, 2(5), 37–50.
Yuliarni, T., Maryati, U., & Ihsan, H. (2016). Analisis Kinerja Perusahaan Sebelum Dan Sesudah Initial Public Offering (IPO) Di Bursa Efek Indonesia (BEI) (Studi Kasus Pada Perusahaan Non Keuangan yang IPO Di Bursa Efek Indonesia Pada Tahun 2012 Dan 2013). Akuntansi Dan Manajemen, 11(1), 25–37. https://doi.org/10.30630/jam.v11i1.97
Adrianto, F. J. N. I. (2021). PENGARUH MEDIA COVERAGE TERHADAP UNDERPRICING INITIAL PUBLIC OFFERING (IPO) DI BURSA EFEK INDONESIA. Fakultas Ekonomi Universitas Andalas, VII No. 1.
Afrifa, Godfred Adjapong. And Padachi, K. (2016).Working Capital Level Influence on SME Profitability. Journal of Small Business and Enterprise Development., Vol. 23, I.
Agustinus Kismet Nugroho.(2018). Ournal of. Asian Journal of Chemistry, 30(8), 1717–1722. https://doi.org/10.5281/zenodo.1473353
Ahmad-Zaluki, N. A. (2009). Post-IPO Operating Performance and Earnings Management.International Business Research, 1(2). https://doi.org/10.5539/ibr.v1n2p39
Altaf, N., & Shah, F. A. (2018). How does working capital management affect the profitability of Indian companies? Journal of Advances in Management Research, 15(3), 347–366. https://doi.org/10.1108/JAMR-06-2017-0076
Andriansyah, A., & Messinis, G. (2016).Intended use of IPO proceeds and firm performance: A quantile regression approach. Pacific Basin Finance Journal, 36, 14–30. https://doi.org/10.1016/j.pacfin.2015.12.001
Autore, D. M., Bray, D. E., & Peterson, D. R. (2009). Intended use of proceeds and the long-run performance of seasoned equity issuers. Journal of Corporate Finance, 15(3), 358–367. https://doi.org/10.1016/j.jcorpfin.2008.12.003
Banos-Caballero. (2016). Financing of working capital requirement, financial flexibility and SME performance. Journal of Business Economics and Management, Vol. 17 No, 1189–1204.
Bringham, F. ., & Daves, R. . (2014). Intermediate Financial Management (9th ed.). Mc Graw-hill.
Childs, P. D., Mauer, D. C., Ott, S. H. (2005). Interactions of corporate financing and investment decisions: The effects of agency conflicts. Journal of Financial Economics, 76 (3), 667–690.
Gonçalves, T., Gaio, C. and Robles, F. (2018). The impact of working capital management on firm profitability in different economic cycles: evidence from the United Kingdom. Economics and Business Letters, Vol. 7 No., 70-75.
Izfs, R. D., & Supriatna, N. (2019b). The Effect of Initial Public Offering (IPO) on Firms Performance. Jurnal Riset Akuntansi Dan Keuangan, 7(1), 19–28. https://doi.org/10.17509/jrak.v7i1.15376
Jain, B. A., & Kini, O. (1994). American Finance Association Wiley The Post-Issue Operating Performance of IPO Firms. Source: The Journal of Finance, 49(5), 1699–1726.
Jeklin, A. (2016). 済無No Title No Title No Title. July, 1–23.
Kawakibi, A. A., Sumiati, & Hadiwidjojo, D. (2019). THE EFFECT OF WORKING CAPITAL MANAGEMENT ON COMPANY PROFITS AND VALUES (STUDY OF CEMENT COMPANIES LISTED ON THE INDONESIA STOCK EXCHANGE). 20(5), 244–261. https://doi.org/10.4018/978-1-4666-9723-2.ch013
kethi Reddy, S., & Professor, A. (2019). The Effect of Liquidity And Leverage on Profitability of Select IT Companies. International Journal for Research in Engineering Application & Management (IJREAM), 05(03), 3. http://ijream.org/papers/IJREAMV05I0350185.pdf
Leone, A. J., S. Rock, and M. W. (2007). Disclosure of intended use-of-proceeds and underpricing in initial public offerings,. Journal of Accounting Research, 111–153.
Morshed, A. (2020). Role of working capital management in profitability considering the connection between accounting and finance. Asian Journal of Accounting Research, 5(2), 257–267. https://doi.org/10.1108/AJAR-04-2020-0023
Okwo, I., Okelue, U., & Nweze, A. (2012). Investment in fixed assets and firm profitability: Evidence from the Nigerian Brewery industry. European Journal of Business and …, 4(20), 10–18. http://www.iiste.org/Journals/index.php/EJBM/article/view/3595
Pais, M.A. and Gama, P. M. (2015). Working capital management and SMEs profitability: Portuguese evidence. International Journal of Managerial Finance, Vol. 11 No, 341-358.
Purba, L. J. . (2011). Analisis Pengaruh Kepemilikan Manajerial, Kebijakan Dividen, Ukuran Perusahaan, Profitabilitas Terhadap Kebijakan Hutang (Studi Kasus pada Perusahaan Non Keuangan yang Terdaftar di Bursa Efek Indonesia Tahun 2006-2009). Universitas Diponegoro.
Ritter, J. (2018). The Long-Run Performance of Initial Public Offerings. April. https://doi.org/10.1111/j.1540-6261.1991.tb03743.x
Singh, H. P., & Kumar, S. (2017). Working capital requirements of manufacturing SMEs: evidence from emerging economy. Review of International Business and Strategy, 27(3), 369–385. https://doi.org/10.1108/RIBS-03-2017-0027
Svetlana and Aaro.(2012). Does Investment Intensity Impact Company Profitability?A Cross- Country Empirical Study.2nd International Conference on Economics, Trade and Development IPEDR. IACSIT Press, Singapore, 36.
Syarifudin, A. (2021). Effect of Leverage on Profitability and Share Return with Intervening Asset Growth. Duconomics Sci-Meet (Education & Economics Science Meet), 1, 233–251. https://doi.org/10.37010/duconomics.v1.5444
Thakur, S., & Singh, D. R. a. (2012). Brand Image, Customer satisfaction and Loyalty Intention: Study in The Context of Cosmetic Product among of The People of Central India. EXCEL International Journal of Multidisciplinary Management Studies, 2(5), 37–50.
Yuliarni, T., Maryati, U., & Ihsan, H. (2016). Analisis Kinerja Perusahaan Sebelum Dan Sesudah Initial Public Offering (IPO) Di Bursa Efek Indonesia (BEI) (Studi Kasus Pada Perusahaan Non Keuangan yang IPO Di Bursa Efek Indonesia Pada Tahun 2012 Dan 2013). Akuntansi Dan Manajemen, 11(1), 25–37. https://doi.org/10.30630/jam.v11i1.97