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supported by calculation of determinant coefficient r2 is about 0.182. it means financial ratios influenced initial price offering about 18,2, and the
rest 81,8 influenced by other factor that not analyzed by this research.
B. Interpretation
The result of this research shows several indications, which the writer intends to discuss the result one by one.
The research result shows that Net Worth Total Liabilities to Fixed Asset significant influence to initial public offering. A measure of long term
solvency NWTLFA has a positive parameter. It can be said that it’s holding fixed asset constant which may increase future earnings. Another explanation
that more capital invested in other than fixed assets should increase future earnings. The category with the largest number of ratios that are associated
with future earnings changes is profitability. These result are consistent previous studies: first, Ou and Penman 1989 noted that previous years
profitability ratios are a good proxy for future profit. They also found that six out of eighteen ratios included in their prediction study were in the
profitability category, second he founds that o’Connor 1973 found that five out of ten ratios with strength of association in this association study were in
the profitability category.
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Operating Income to Total Liabilities has negatively significant influence to initial public offering. If operating income getting higher it means
that the companies has already perform well and has good reputation toward the company’s income in public perception. Then, total liabilities also
affected weather company has huge number of total liability or not. Net Worth to Sales has negatively significant influence to initial public
offering. Net worth which means the company capital also has significant influence toward initial public offering because it is about the owner, higher
the capital is so it could be influencing the initial stock price. Net Income to Total Liabilities has significant influence to initial
public offering and also Net Income to Net Worth significant influence to initial public offering.
While others such as cash flow to current liabilities doesn’t have significant influence to IPO because one of the aim by doing IPO is for
raising fund. Higher the ratio of this cfcl means that fund has to be invested and this meant that company already has enough fund and no need for
others to buy their stocks for adding the capital. As we see from the signification test for a whole sample that the writer
got there is only 0.049 which close to 0.05 and it means even it still in significant number, the influence isn’t really tight almost not influence the
initial public offering. According to previous research Yusuf Haryono
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2003:19 financial ratios doesn’t have great influence to initial public
offering. Financial ratio in second year before go public has greater effect to initial public offering compare to financial ratio in the first year before go
public.
CHAPTER V CONCLUSION AND IMPLICATION
A. Conclusion
From the research in chapter 4, there are some conclusions. The conclusions are aimed to answer the questions. From the data analyzing,
the conclusions are: Financial Ratios is an important data to measure the performance of
a company and this is examined to determine the influence toward initial public offering.
The result is Net Worth and Total Liabilities to fixed asset, operating income to total liabilities, net worth to sales, Net Income and
Total Liabilities, Net Income and Total Liabilities, and net income to net worth to fixed asset have significant influence toward initial public offering
if it is tested one by one. As whole of the model, the significance level only 0.49 which means the influence almost not significance to initial public
offering.
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B. Implication of Study
This research result can be used for institutions or company which runs in banking sector to know what factors that can be used to increase their initial
public offering. Institution can use market strategy to increase their performance in maintaining financial performance for inside or third party.
Others variables besides financial ratios can be put in a serious attention because financial ratios not significantly influence initial public offering. Even
the influence of financial ratios not really affected price of IPO but financial health of company has to be good performed because one of the reason for
going public is has health financial performance.
C. Recommendation
For further writer who conduct the same research is expected to produce better research, writer suggest that:
1. Financial report is provided in a good structure so easier to be read and understand.
2. Further writer is expected to produce a better qualified research by increase the number of samples , thus the generalization level would be
better so that the research result would be as well as expected. 3. The further distribution questionnaires should be distributed on the
right timing, which not coincides with the high-season financial report examination, so that the respondents are expected to answer the
