This study compares the profitability, operational efficiency, and firm value over the 1985-1990 period of 100 firms that had IPOs in 1985 compared to a matched sample of similar firms which had their IPO before 1980. We find that the 1985 IPO firms were more profitable, operationally more efficient, had more liquid assets, and had greater value over the 1985-1990 period.
Corporate Efficiency, IPO, Initial Public Offering
McConaughy, Daniel L.; Dhatt, Manjeet S.; and Kim, Yong H.
"Corporate Efficiency, Profitability, and Value Changes after the IPO,"
Journal of Small Business Finance:
2, pp. 167-170.
Available at: http://digitalcommons.pepperdine.edu/jef/vol3/iss2/6