Comparative Analysis of ROE and DER Before and After Company IPOs in Indonesia

Increasingly fierce business competition has prompted companies to determine the right strategy so that they can continue to operate and excel in the competitive market. This study aims to analyze the differences in financial performance of companies before and after their IPO on the Indonesia Stock Exchange during the period 2018–2022. The method used is quantitative comparative with the Wilcoxon Signed-Rank test because the data is not normally distributed. The results show that there are significant differences in ROE and DER before and after the IPO. ROE tends to decrease, meaning that the profitability of IPO companies is declining, presumably due to a period of crisis. Similarly, DER also decreases, indicating an improvement in the capital structure of the issuing company.

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Publication Details

Journal
Journal of Finance and Business Digital
Published
2025-09-29
DOI
https://doi.org/10.55927/jfbd.v4i3.369
Primary Topic
Private Equity and Venture Capital
Type
article
Field-Weighted Citation Impact
0.00
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article

Comparative Analysis of ROE and DER Before and After Company IPOs in Indonesia

Vivi Ariyani, Yosef Dwi Kurniawan
Journal of Finance and Business Digital
Private Equity and Venture Capital
article

Comparative Analysis of ROE and DER Before and After Company IPOs in Indonesia

Vivi Ariyani, Yosef Dwi Kurniawan
article en

Abstract

Increasingly fierce business competition has prompted companies to determine the right strategy so that they can continue to operate and excel in the competitive market. This study aims to analyze the differences in financial performance of companies before and after their IPO on the Indonesia Stock Exchange during the period 2018–2022. The method used is quantitative comparative with the Wilcoxon Signed-Rank test because the data is not normally distributed. The results show that there are significant differences in ROE and DER before and after the IPO. ROE tends to decrease, meaning that the profitability of IPO companies is declining, presumably due to a period of crisis. Similarly, DER also decreases, indicating an improvement in the capital structure of the issuing company.

Journal of Finance and Business DigitalVol. 4(3)
Universitas Katolik Widya Mandala Surabaya (ID)
Openalex Percentile: Top 57%
Private Equity and Venture Capital
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