Operating Performance of Initial Public Offering Firms after Issue in India – A Revisit
Published By: Reserve Bank of India | Published Date: March , 2018The 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.
Author(s): Avdhesh Kumar Shukla, Tara Shankar Shaw | Posted on: Apr 09, 2018 | Views()