The Relationship Between Initial Public Offering and Firm Performance: A Research on Borsa Istanbul (BIST)

Abstract

The aim of this study is to examine the relationship between initial public offering (IPO) and firm performances of the firms operating in Turkey. The data set involves 38 firms that conducted initial public offerings in Borsa Istanbul (BIST) for the period of 2003 and 2011. Return on asset (ROA), return on equity (ROE), and operating profit margin (OPM) are used as a measure of firm performance. Median change analysis and panel data analysis have been employed as two different methods. According to the results of these analyses, there is a statistically significant relationship between the IPO and firm performance. It was found that firm performance decreased during the same and the following first year that the IPO took place, in comparison to the year preceding the IPO.

Keywords

• i̇lk halka arz
• finansal performans
• medyan değişim analizi
• panel veri analizi
• borsa istanbul
• initial public offering
• financial performance
• median change analysis
• panel data analysis
• borsa istanbul