| Abstract [eng] |
The purpose of the master's thesis is to investigate how the initial public offering of shares, carried out by companies operating in the Baltic States, affects the company's financial indicators. The work consists of three main parts: literature analysis, methodology of the conducted research and research result presentation. Literature analysis presents a definition of initial public offering, describes process of initial public offering and its role and place in the company's financing structure, introduces initial public offering theories, provide insights on why companies go public and analyses research made on the topic how initial public offering affects company’s financial results. In the second and third part of the thesis, author has caried out a study how initial public offering, made in Baltic states, affects company’s financial results. 21 companies, that performed initial public offering in the Baltic states, met the established criteria and was selected for further study. The main purpose of the study was to determine whether initial public offering, done in Baltic states, affect selected financial ratios in the period until 5 years after the initial public offering. To eliminate general market influence on company’s financial performance, control group was selected, consisting of companies that did not perform an initial public offering. The results of the research were statistically processed with the SPSS programme. Various statistical tests were used in the study to determine normality of data set (Shapiro-Wilk test), difference between two means (Wilcoxon and t tests), correlation between initial public offering and changes in company’s financial ratios and perform a regression analysis. Performed research shows inconsistent results between selected financial ratios. While certain financial rations (i.e. net income margin) were found to be not materially affected by the initial public offering. Others were proven to have a statistical difference before and after initial public offering and even have a material correlation (financial leverage). The conclusions and recommendations provide a concise overview of the main ideas extracted from the literature analysis, along with the outcomes of the research conducted. With this research very unpopular research topic in Baltic states was touched, drawing attention on effects of initial public offering on company’s financial performance, which can have significant implications for investors, policymakers, and corporate decision-makers. Furthermore, these findings contribute to the broader understanding of financial markets and corporate finance in the Baltic states, providing valuable knowledge for both academic research and practical applications. |
