The Post-Initial Public Offering (IPO) Operating Performance: Further Evidence from Borsa Istanbul IPOs

Abstract

This study aims to examine the post-IPO operating performance of 83 selected Borsa Istanbul firms that went public between 2005 and 2019. The study also compares the post-IPO operating performance of firms according to underwriting type and IPO method. Besides, the study analyzes firm-specific factors and macroeconomic factors affecting the operating performance of IPO firms. Mann Whitney U Test and Wilcoxon Signed Rank Test were applied in univariate analysis. In multivariate analysis, a panel data econometric model was used. This study found that firms’ operating performance declined after going public. There is no significant difference in operating performance between the commitment type of IPOs and the best effort type of IPOs. Share sales type of IPOs perform better than capital increase type of IPOs. Asset size as a firm-specific variable and consumer price index as a macroeconomic variable significantly affect operating performance. The study aims to enrich the literature by comparing the operating performance of firms based on the IPO method and the underwriting type, and by examining the influence of macroeconomic factors on performance.

Keywords

• Public Offering
• Borsa Istanbul
• Capital Structure
• Financial Tables

Halka Arz Sonrası Faaliyet Performansı: Borsa İstanbul Halka Arzlarından Yeni Kanıtlar

Abstract

Bu çalışma, 2005-2019 yıllarında halka açılan seçilmiş 83 Borsa İstanbul firmasının halka arz sonrası faaliyet performansını incelemektedir. Çalışma ayrıca, halka arz aracılık türüne göre ve halka arz yöntemine göre şirketlerin halka arz sonrası faaliyet performanslarını karşılaştırmaktadır. Bunların yanı sıra çalışma, faaliyet performansını etkileyen şirkete özgü faktörler ve makroekonomik faktörleri de analiz etmektedir. Tek değişkenli analizlerde Mann Whitney U Testi ve Wilcoxon İşaretli Sıralar Testi uygulanmıştır. Çok değişkenli analizde panel veri ekonometrik modeli kullanılmıştır. Çalışma sonucunda halka arz şirketlerinin performanslarında düşüş tespit edilmiştir. En iyi gayret aracılığı ve bakiyeyi yüklenim aracılığıyla halka açılan şirketlerin performansları arasında anlamlı farklılık yoktur. Ortak satışıyla halka açılan şirketlerin performansı sermaye artışı yaparak halka açılan şirketlere göre daha iyidir. Ayrıca, şirkete özgü değişkenlerden aktif büyüklük ile makroekonomik değişkenlerden tüketici fiyat endeksi faaliyet performansını anlamlı şekilde etkilemektedir. Çalışmanın, halka arz yöntemine ve aracılık türüne göre faaliyet performansının karşılaştırılması ile makroekonomik faktörlerin etkisinin araştırılması konusunda literatüre katkı sağlaması beklenmektedir.

Keywords

• Halka Arz
• Borsa İstanbul
• Sermaye Yapısı Finansal Tablolar

References

1. Ali, H.A.A. (2017). Behavioral timing, valuation and postissue performance of UK initial public offerings. Journal of Behavioral Finance, 18(2), 152-166. https://doi.org/10.1080/15427560.2017.1308938
2. Amor, S.B. and Kooli, M. (2017). Intended use of proceeds and post-IPO performance. The Quarterly Review of Economics and Finance, 65, 168-181. https://doi.org/10.1016/j.qref.2016.09.001
3. Arik, E. and Mutlu, E. (2015). Post–initial public offering operating performance and its determinants: Initial public offering characteristics and corporate governance practices. Emerging Markets Finance and Trade, 51(2), 62-83. https://doi.org/10.1080/1540496X.2014.998943
4. Avci, S.B. (2021). Long-run price and operating performance of initial public offerings in Borsa Istanbul. Business and Economics Research Journal, 12(2), 339-358. doi:10.20409/berj.2021.325
5. Bağcı, H. ve Sarıay, İ. (2021). Halka açık piyasa değeri ve piyasa değerinin işletme performansındaki rolü: BIST Halka Arz Endeksi’nde bir uygulama. Finansal Araştırmalar ve Çalışmalar Dergisi, 13(24), 36-54. https://doi.org/10.14784/marufacd.880613
6. Başpınar, A. (2005). Türkiye’de ve dünyada denetim standartlarının oluşumuna genel bir bakış. Maliye Dergisi, 148, 35-62. Erişim adresi: https://www.hmb.gov.tr/
7. Bonaventura, M., Bonini, S., Capizzi, V. and Giudici, G. (2018). Does post-IPO M&A activity affect firms’ profitability and survival? Journal of Financial Management, Markets and Institutions. 6(1), 1850005. https://doi.org/10.1142/S2591768418500058
8. Borsa İstanbul. (2023). Halka arz ve Borsa İstanbul’da işlem görme [Veri seti]. Erişim adresi: https://www.borsaistanbul.com/data/kilavuzlar/Halka_arz_ve_borsada_islem_gorme.pdf

9. Canikli, S. (2017). Earnings management practices in initial public offering process: Evidence from Borsa Istanbul (Yayımlanmamış doktora tezi). Marmara Üniversitesi Sosyal Bilimler Enstitüsü, İstanbul.
10. Celikyurt, U., Sevilir, M. and Shivdasani, A. (2010). Going public to acquire? The acquisition motive in IPOs. Journal of Financial Economics, 96(3), 345-363. https://doi.org/10.1016/j.jfineco.2010.03.003
11. Chemmanur, T.J., Gupta, M., Simonyan, K. and Tehranian, H. (2021). The relationship between venture capital backing and the top management team quality of firms going public and implications for initial public offerings. Journal of Business Venturing, 36(6), 106148. https://doi.org/10.1016/j.jbusvent.2021.106148
12. Chen, H.K. and Liang, W. (2016). Do venture capitalists improve the operating performance of IPOs? International Review of Economics & Finance, 44, 291-304. https://doi.org/10.1016/j.iref.2015.12.009
13. Coakley, J., Hadass, L. and Wood, A. (2007). Post-IPO operating performance: Venture capital and the bubble years. Journal of Business Finance and Accounting, 34, 1423–1446. https://doi.org/10.1111/j.1468-5957.2007.02055.x
14. Croci, E., Rigamonti, S. and Signori, A. (2022). Performance, investment, and financing patterns of family firms after going public. Corporate Governance: An International Review, 30(6), 686–712. https://doi.org/10.1111/corg.12446
15. Çakır, N. (2018). Aracı kuruluş etkisinin halka arz performansına etkisi (Yayımlanmamış doktora tezi). Kocaeli Üniversitesi Sosyal Bilimler Enstitüsü, Kocaeli. Falconieri, S., Filatotchev, I. and Tastan, M. (2019). Size and diversity in VC syndicates and their impact on IPO performance. The European Journal of Finance, 25(11), 1032-1053. https://doi.org/10.1080/1351847X.2018.1560345
16. Fan, P. (2019). Debt retirement at IPO and firm growth. Journal of Economics and Business, 101, 1-16. https://doi.org/10.1016/j.jeconbus.2018.08.004
17. Gao, Q., Long, H. and Zhao, J. (2021). Are initial public offerings significant to firm performance in an emerging stock market? Evidence from China. South African Journal of Business Management, 52(1), a2517. https://doi.org/10.4102/sajbm.v52i1.2517
18. Gogineni, S. and Upadhyay, A. (2023). Venture capital and private equity investors, governance, and success of IPOs: Evidence from India. Journal of Financial Research, 46(2), 437–468. https://doi.org/10.1111/jfir.12319
19. Gülcemal, T. (2016). Hisse senetleri ilk defa halka arz edilen firmalarda entelektüel sermayenin firma performansına etkisi (Yayımlanmamış doktora tezi). Erciyes Üniversitesi Sosyal Bilimler Enstitüsü, Kayseri.
20. Güleç, Ö. F., Temiz, H. and Karacaer, S. (2016). Earnings management around initial public offerings: Borsa Istanbul application. Journal of Business Research Turk, 8(4), 253-265. Retrieved from http://www.isarder.org/
21. Güriş, S. ve Pala, A. (2016). Hisse senedi getirisi ve firma karakteristikleri arasındaki ilişkinin borsa İstanbul üzerinde test edilmesi: Panel veri modeli uygulaması. Finansal Araştırmalar ve Çalışmalar Dergisi, 8(15), 413-421. https://doi.org/10.14784/marufacd.266453
22. Jain, B. and Kini, O. (1994). The post-issue operating performance of IPO firms. The Journal of Finance 49(5), 1699-1726. https://doi.org/10.2307/2329268
23. Jain, B.A., Li, J. and Shao, Y. (2013). Governance, product market competition and cash management in IPO firms. Journal of Banking & Finance 37(6), 2052–68. https://doi.org/10.1016/j.jbankfin.2013.01.032
24. Jensen, M.C. and Meckling, W.H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305-360. https://doi.org/10.1016/0304-405X(76)90026-X
25. Kim, K.A., Kitsabunnarat, P. and Nofsinger, J.R. (2004). Ownership and operating performance in an emerging market: Evidence from Thai IPO firms. Journal of Corporate Finance 10(3), 355–381. https://doi.org/10.1016/S0929-1199(02)00019-6
26. Koçdemir, B. ve Küçükçolak, R.A. (2021). Hisseleri BIST gelişen işletmeler piyasasında (XPGIP) işlem gören şirketlerin finansal performanslarının analizi: Halka arz öncesi ve sonrası bir karşılaştırma. Kahramanmaraş Sütçü İmam Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, 11(1), 125-141. https://doi.org/10.47147/ksuiibf.831392
27. Krishnan, C.N.V. and He, Y. (2021). IPO performance: A cross-country comparison of the effect of regulations (SSRN Working Paper No. 3833813). Retrieved from https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3833813
28. Kurtaran, A. and Er, B. (2008). The post-issue operating performance of IPOs in an emerging market: Evidence from Istanbul Stock Exchange. Investment Management and Financial Innovations, 5(4), 50-62. Retrieved from https://www.businessperspectives.org/
29. Küçükçaylı, F. (2013). Halka arzın firma mali performansı üzerine etkisi: Türkiye örneği (Yayımlanmamış doktora tezi). Süleyman Demirel Üniversitesi Sosyal Bilimler Enstitüsü, Isparta.
30. Lefebvre, V. (2023). The growth process of IPO firms. Journal of Business Venturing Insights, 19, e00377. https://doi.org/10.1016/j.jbvi.2023.e00377
31. Lobato, F.M., Martín, C.J.G. and Viñas, J.E.F. (2020). Ownership and operating performance of Spanish family IPO firms, In C. Camisón, and T. González (Eds.), Competitiveness, organizational management, and governance in family firms (pp. 210-233). Pennsylvania: IGI Global. http://dx.doi.org/10.4018/978-1-7998-1655-3.ch009
32. Long, H., Lin, X. and Chen, Y. (2021). Why the operating performance of post-IPO firms decreases: Evidence from China. Journal of Risk and Financial Management 14(9), 424. https://doi.org/10.3390/jrfm14090424
33. Loughran, T. and Ritter, J.R. (1995). The new issues puzzle. The Journal of Finance, 50(1), 23-51. https://doi.org/10.2307/2329238 McConnell, J.J. and Servaes, H. (1990). Additional evidence on equity ownership and corporate value. Journal of Financial Economics, 27(2), 595–612. https://doi.org/10.1016/0304-405X(90)90069-C
34. Mhagama, F.L. and Topak, M.S. (2019). The relationship between initial public offering and firm performance: A research on Borsa Istanbul (BIST). İstanbul Gelişim Üniversitesi Sosyal Bilimler Dergisi, 6, 82-93. https://doi.org/10.17336/igusbd.616838
35. Michala, D. (2019). Are private equity backed initial public offerings any different? Timing, information asymmetry and post-IPO survival. Journal of Corporate Finance, 59, 31-47. https://doi.org/10.1016/j.jcorpfin.2016.10.005
36. Michel, A., Oded, J. and Shaked, I. (2020). Institutional investors and firm performance: Evidence from IPOs. The North American Journal of Economics and Finance, 51, 101099. https://doi.org/10.1016/j.najef.2019.101099
37. Mikkelson, W.H., Partch, M.M. and Shah, K. (1997). Ownership and operating performance of companies that go public. Journal of Financial Economics, 44(3), 281-307. https://doi.org/10.1016/S0304-405X(97)00006-8
38. Myers, S.C. and Majluf, N.S. (1984). Corporate financing and investment decisions when firms have information that investors do not have. Journal of Financial Economics, 13(2), 187-221. https://doi.org/10.1016/0304-405X(84)90023-0
39. Ozen, E. (2016). Behaviors of companies after initial public offering the case of Turkey. Eurasian Journal of Economics and Finance, 4(4), 20-28. http://dx.doi.org/10.15604/ejef.2016.04.04.003
40. Pereira, T.P. and Sousa, M. (2017). Is there still a Berlin Wall in the post‐issue operating performance of European IPOs? International Journal of Finance & Economics, 22(2), 139-158. https://doi.org/10.1002/ijfe.1573
41. Pesaran, M. H. (2021). General diagnostic tests for cross-sectional dependence in panels. Empirical Economics, 60(1), 13-50. https://doi.org/10.1007/s00181-020-01875-7
42. Premti, A. and Madura, J. (2013). Motives and consequences of IPOs in cold periods. The Quarterly Review of Economics and Finance, 53(4), 486-496. https://doi.org/10.1016/j.qref.2013.06.001
43. Prisilla, G. and Bimo, I.D. (2022). The impact of internal and external growth strategy on firm performance post-IPO. Jurnal Akuntansi, 16(1), 121-140. https://doi.org/10.25170/jak.v16i1.3272
44. Short, H. and Keasey, K. (1999). Managerial ownership and the performance of firms: Evidence from the UK. Journal of Corporate Finance, 5(1), 79–101. https://doi.org/10.1016/S0929-1199(98)00016-9
45. Teoh, S.H., Welch, I. and Wong, T.J. (1998). Earnings management and the underperformance of seasoned equity offerings. Journal of Financial Economics, 50(1), 63-99. https://doi.org/10.1016/S0304-405X(98)00032-4
46. Wang, C. (2005). Ownership and operating performance of Chinese IPOs. Journal of Banking & Finance, 29(7), 1835–1856. https://doi.org/10.1016/j.jbankfin.2004.07.003
47. Yerdelen Tatoğlu, F. (2021). Panel veri ekonometrisi (6. bs.). İstanbul: Beta Yayıncılık.