Financial Performance Analysis of SMEs Before and After Initial Public Offering (IPO) on the Indonesia Stock Exchange (IDX)

Budi Wahyono (Department of Economic Education Faculty of Teacher Training and Education Universitas Sebelas Maret)

BISE: Jurnal Pendidikan Bisnis dan Ekonomi
Vol 4, No 2 (2018): Jurnal Pendidikan Bisnis dan Ekonomi

SMEs still face funding constraints. IPO is one of the efforts that can be done by SMEs to face this constraint. However, it is not yet known whether the financial performance of SMEs will increase after conducting an IPO. This study aims to analyze the financial performance of SMEs before and after the IPO. The sample of this study is SMEs that listed on the IDX in 2017, which is as many as five SMEs. SMEs financial performance is measured through three SMEs financial ratios, namely liquidity, solvability, and profitability. The paired sample t-test was used to compare the financial performance of SMEs before and after the IPO. The results showed that there is no significant difference in the financial performance of SMEs before and after the IPO. The results of this study provide recommendations for further research related to the valuation and performance of SME IPOs.