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Does Warrant Strategy Along with IPO Provide Better Performance?

In: Proceedings of the BISTIC Business Innovation Sustainability and Technology International Conference (BISTIC 2022)

Author

Listed:
  • Yuli Soesetio

    (Universitas Negeri Malang, Department of Management, Faculty of Economic and Business)

  • Dyah Arini Rudiningtyas

    (Universitas Islam Malang, Department of Accounting, Faculty of Economic)

  • Retno Nur Habibah

    (Universitas Negeri Malang, Department of Management, Faculty of Economic and Business)

Abstract

An Initial Public Offering (IPO) can provide limited benefits for companies in the short to medium term. This study aims to evaluate the use of the Package IPO (PIPO) and Shares-only IPO (SIPO) strategy that accompanies the IPO process of companies listed on the Indonesia Stock Exchange (IDX). The sample used in this study was all companies that carried out IPOs for the period 2010–2016 as many as 155 companies. Using Paired Sample T-test and Wilcoxon Signed Rank Test the results showed that in the short-term there was a significant difference in financial performance of leverage (DER) and working capital (CR) before and after the IPO, but only in the medium-term CR performance did not show a significant difference. Meanwhile, the use of warrant inclusion strategies provides quite diverse results. When the company uses the SIPO strategy, it shows a significant difference in the company's performance in the short- and medium-term. In contrast, the use of other strategies during IPOs in the short- and medium-term does not show a difference in performance.

Suggested Citation

  • Yuli Soesetio & Dyah Arini Rudiningtyas & Retno Nur Habibah, 2023. "Does Warrant Strategy Along with IPO Provide Better Performance?," Advances in Economics, Business and Management Research, in: Dediek Tri Kurniawan & Ika Zutiasari (ed.), Proceedings of the BISTIC Business Innovation Sustainability and Technology International Conference (BISTIC 2022), pages 130-139, Springer.
    • Handle: RePEc:spr:advbcp:978-94-6463-178-4_14
    DOI: 10.2991/978-94-6463-178-4_14
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