Financial and Operational Performance Impact of Publuc Offering in Business

Abstract

Purpose – This study aims the effects of public offering on the financial and operating performances of companies and offers them sustainable performance suggestions regarding public offering. Design/methodology/approach- In the study, since the data did not contain normal distribution, spearman correlation analysis and friedman test were used, in addition, the kruskal wallis-h test was performed for multivariate analysis and the results were interpreted with the man whitney-u test. In the last section, regression analysis with dummy variables for initial and seasonal public offerings is included. Findings – In the study, the initial and seasoned public offerings of 339 companies were examined between 2012 and 2021, 4 initial public offerings were excluded due to lack of data, and 194 of the 233 periodical public offerings could not be matched with the initial public offering. Moreover, two or more periodic public offerings are merged and total datas have been 125 companies. Liquidity, financial structure, profitability and valuation ratios, which are considered as financial performance indicators of the companies, show a high level of improvement compared to the pre-public offering, by 40% in the IPO year and 80% after the IPO. Bankruptcy prediction measurements, credit rating calculations and activity structure ratios, which we consider as the operating performance indicators, improved by 10% in the IPO year and 15% after the IPO. Tartışma – According to the results of the research, companies are affected positively from the public offering and their financial performance improves at a higher level than their operating performance. It is thought that the use of the collected funds in capital increase and debt payment is effective in making the financial indicators more positive. Since there is no other study that examines financial and operational performance analysis together on public offerings, new studies are needed in this field.