| dc.description.abstract | The study sought to investigate if there is significant difference in profitability,
liquidity, leverage and the overall financial performance of companies before and
after going public. The study analyzed fourteen companies which went public before
2000. The study used balance sheets and the Income statements to compute financial
ratios which were the basis of the study. The ratios which were analyzed include:
profitability, liquidity and leverage ratios. The data was analyzed using the MS Excel.
Trend analysis findings showed that profitability, liquidity, leverage and the overall
financial performance increased after IPO. Generally the finding showed that the
overall financial performance after going public improves in terms of trend analysis
but not significantly though the profitability increases significantly. The decision to
go public affected not only the profitability but also the overall financial performance.
The study concludes that private companies should start thinking of going public to
reap the benefits associated with it. Though there substantial costs associated with
going public, companies should not shun from the process since it has numerous
benefits | en_US |
