Operating Performance of Initial Public Offering Firms after Issue in India – A Revisit

Avdhesh Kumar Shukla and Tara Shankar Shaw

Working Papers from eSocialSciences

Abstract: The paper examines how the operating performance of the Indian firms changed after their initial public offerings. It is found that the operating performance does not deteriorate post IPOs, if a performance indicator like “profit†is normalised by sales volumes (i.e., return on sales) rather than assets (i.e., return on assets). Unlike a distinct decline in return on assets reported in similar other studies, a stable return on sales is found in this study. This paper highlights the importance of choice of right variables for matching and normalisation purposes.

Keywords: Initial public offers; return on assets; turnover ratio; promoters’ shareholding and agency relationship (search for similar items in EconPapers)
Date: 2018-04
Note: Institutional Papers
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