Proceeding of 9th International Seminar on Industrial Engineering and Management ISSN : 1978-774X

ANALYSIS OF EARNINGS PER SHARE BEFORE AND AFTER IPO AND THE STRATEGY (CASE STUDY: COMPANIES PERFORM IPO IN INDONESIA EXCHANGE YEAR 2013)

1 2 3 Dewa Ayu Jessica Putri , Endang Chumaidiyah , Rita Zulbetti .

1, 2, 3 Faculty of Industrial Engineering, Telkom University, Bandung 40257, Indonesia [email protected], [email protected], [email protected]

ABSTRACT This study aims to identify differences value of EPS before and after the IPO in companies listed on IDX in 2013. Data collection methods used in this research is literature study through secondary data in the form of a company’s and . Based on research about differences value analysis of EPS, the financial sector has significantly different value of EPS before and after the IPO. Next, PT Bank Mestika Dharma Tbk with biggest total among the financial industry is chosen for the representative company SWOT analysis. By describing the strengths, weaknesses, opportunities, threats, and mapping the competitive , then formulating strategies based on SWOT analysis and portfolio in selected companies from the sectors that have EPS performance test differences. This type of research used in this research is descriptive qualitative where using the priority weighting calculation for the internal and external factors by using AHP method expert judgment regards to analyse with SWOT. Meanwhile the SWOT matrix and Internal-External analysis result, it concluded that the company is in grow-and-stability quadrant. Refers to the study, the alternative strategy is horizontal integration, as well as product development. Key words: Earnings Per Share, IPO, AHP Method, SWOT, Strategy

1. INTRODUCTION growth and expansion of the businesses. Initial will change the status of The has very important the company from private to be public role in the economy representative of a corporate and make consequences to country, because the capital markets runs the responsible on the management to improve economic functioning as well as financial its performance. functions. Based on the economic point of Currently Indonesia's economy has view, the serves an efficient shown a good significant progress, it can be mobility system to -term funds for the seen from many companies that is going government. Through the capital markets the public. It means that people began to government can allocate public funds into cultivate an open economy and ready to be productive sectors. From the more competitive. A clear indicator is the financial perspective, the stock market increasing performance of a provides an efficient medium to allocate that functioning as a mediator or intermediary funds from those who have surplus funds, in the trading of shares, in this case is the which are , and those who need shares which are listed on the stock funds, which are companies. exchange. Encouragement of funding needs became Companies that have become public and one of the main reasons that a company have registered their name on Indonesia willing to become a public company by selling Stock Exchange (IDX) will be easier to obtain shares in the capital market. IPO is a funds rather than had to borrow funds from company's offering for the first time and held other parties. The investors will be interested in the , then the shares will be to invest funds if they see company in a good traded in the . Fulfilling the state, has ability to produce profits, the company's funding is as a consequence of company's future prospects, as well as the

Analysis of Earning Per Share Putri 1 Proceeding of 9th International Seminar on Industrial Engineering and Management ISSN : 1978-774X given by the company as a investors will examine whether the company profitable enterprise for them. The higher the is profitable for them or not, because it profits produced by the company, the higher describes the amounts of money that is the rate of return provided to investors that obtained for each share of and expected, so that maximizing earnings describes the prospect for company’s became the main focus for investors. earnings, especially in the future (Tjiptono and Hendry, 2001). Earnings per share (EPS) can indicate the level of prosperity or well- being of a company. When the earnings per share (EPS) are distributed to the investors is in high number, it indicates that the company can provide a good level of welfare for its shareholders, and vice versa. The reasons for selecting this study is because the earnings per share (EPS) Figure 1. Number of Companies Perform reflects the performance of the company, IPO in Indonesia from the value of the EPS that need to be In the process of selling shares, the taken before and after the IPO, it can be seen financial statements have an important whether the company has a good function to the owner of the company (issuer), performance or not related after the IPO. underwriters, and investors. It is important However, based on several studies relating to because it is one of the main source of the company's financial performance prior the information for assessing the pricing in IPO IPO and post IPO, it turns out to conclude process. On point of view, it is a different outcomes. source of information in determining Ritter (1994), documented that the investment decisions. This financial earnings per share of companies going public information can be found in the prospectus typically grows rapidly in the years prior to provided by the company which is also going public, but then actually declines in the contains non-financial information first few years after IPO. Else Hsun and Tzu (Sulistyanto and Wibisono, 2003). The (2003) concluded that the result of information in the prospectus required by performance in Chinese IPOs with sample of investors in the decision-making process on 884 companies in mid-1995 to mid- the exchange (Kim and Ritter, 1999). 1999 period is that earnings per share and Performance’s assessment of the Return on has no significant change company before and after becoming a public after IPO. Hsun and Tzu (2003) even said company is very important. The company's that IPO is of little obvious help to companies’ performance especially in the form of operational performance because of the financial statements required to be reported financial indicators tend to fall rapidly year on periodically as a form of full disclosure year. Consistent to Hsun and Tzu study, function of being public company. Wang (2005) also had conclusion on his Assessment’s criteria for the company's research that operating performance of operating implementation results is varied. Chinese listed companies 3 years after IPO One of them is earnings per share (EPS) is nearly one-third lower than 3 years prior to value as an important indicator of the IPO. management's achievement in satisfying Purba (2006) also said on his research company’s shareholders in the form of rate of that profitability ratio, liquidity ratio, and stock return in the period before and after the IPO. performance after IPO is decrease, whereas According to Prastowo and Juliaty (2008) the solvability ratio is increase on his study in earnings per share (EPS) is the amount of PT. X. Added by Pastusiak (2016), the study that become the rights to shareholder performed profitability analysis such as ROE, on one sheet of ordinary shares. Earnings per ROA, NPM, and OPM ratio in companies share (EPS) is the first important component before and after IPO. The result is that that must be considered in analysing profitability of companies in a year before IPO company. By looking at the firm’s EPS value, id better than one year after IPO. Jain and

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Kini (1994), who said that overall of Malaysia analysis, is in form of recommendations and IPOs in 1990 to 2000 period, there is strategy improvement. declining performance in the IPO year and up EPS value of companies who to three years after IPO. The year-to-year perform IPO in 2013 analysis reveals that the greatest declining performance is in the year immediately following the IPO. EPS before IPO EPS after IPO In Kenya, study by Kuria (2014) shows Paired Sample T-Test that companies listed in Kenya, over the six years period extended from prior and post Analysis EPS before and after IPO financial performance levels have IPO declined based on several performance measures. Wamari (2014) also supported on EPS performance her study which has shown that the overall analysis stock performance in the long run after going public in underperform in terms of trend AHP Questionnaires AHP Questionnaires analysis but not significantly. On the other hand, Kinyua (2013) studied the effects of Internal Factors External Factors on 56 listed companies’ performance in Nairobi Stock Exchange Priority Weight Priority Weight conclude that profitability ratio and earnings per share ratio rose after IPO. SWOT Analysis If the financial ratios can be used as predictors of EPS, then these findings Result constitute sufficient useful knowledge for Strategy users of financial statements and all Improvement stakeholders. Conversely, if the financial ratios is not enough to affect the EPS, the results of this research will strengthen the Recommendation evidence of inconsistency previous empirical findings. Figure 2. Conceptual Model The data collection phase conducted to 2. CONCEPTUAL MODEL obtain the information needed in order to achieve the research objectives. In this study, The conceptual model contains the the authors use secondary data and primary concept of workflow and flow variables used data. According to Kuncoro (2003) notion of in the study to analyse the earnings per share secondary data is data that has been (EPS) performance of companies which collected by data collection agencies and perform IPO in 2013. The EPS value then be published to the user community data. While classed in the period of before and after the the data according to the time it was company conducted an IPO. A total of 30 collected, this study uses cross-section data companies which perform an IPO in 2013 will that show the specific point in time. be classified into some industry sectors. After The data required is the distribution of that, the performance of EPS will be analysed cluster company types and industrial sectors as overall. So that on the next stage, there will for companies that conduct an IPO in 2013, have chosen sector then company which can the number of of each be developed further into the analysis of the company to hold an IPO in 2013, the financial performance improvement strategy. statements for 2011 to 2015 for each After the analysis of EPS performance, company to hold an IPO in in 2013. These there will be some questionnaires that will data are obtained from the capital market determine the weighting priority for every reference centre Indonesia Stock Exchange, internal or external factor which will be used through an internet website in SWOT analysis. The result after finding http://www.idx.co.id, and partly obtained from priority weight using AHP, then doing SWOT secondary documents such as Indonesia

Analysis of Earning Per Share Putri 3 Proceeding of 9th International Seminar on Industrial Engineering and Management ISSN : 1978-774X

Capital Market Directory (ICMD), financial value which also decreasing, IPO was make statements, and annual reports. the condition better in these companies. This analysis generates data in the form of Phenomenon in Indonesian descriptive observations as well as macroeconomic recent years, Indonesia’s comparison the performance of EPS economic growth, including the growth companies doing IPOs in 2013 before and performance of financial secotr, tends to slow after the initial public offering as well as to down as a result of the weakening global analyse the strategies in improving economy. In 2013, the Indonesian economy performance by using SWOT analysis. was experiencing a slowdown in growth to SWOT analysis is done by describing 5.78% from 6.20% in 2012. There is a strengths, weaknesses, opportunities and decrement from 5.78% to 5.02% in 2014, and threats then calculating the priority weight its continuosly has slowly growth until in using AHP method with expert 2015, it was recorded at 4.79% growth, judgements.All tables, charts, and graphs slower compared to 2014. Year 2015 has the should be given on separate sheets with growth percentage of Indonesia’s economic titles. Wherever necessary, the source was the lowest since 2009. This is mainly should be indicated at the bottom. Number cause due to a slowing global economy, and complexity of such exhibits should be as including slowing economic growth in China. low as possible. All figures should be INDONESIA'S ECONOMIC indicated in million and billion. Decimal GROWTH separated by dot (.). All graphs should be

black and not in color. Endnotes, italics, and

6,20% 5,78%

quotationmarks should be kept to the 5,02% 4,79% minimum.

3. DATA COLLECTING AND DATA PROCESSING

2012 2013 2014 2015 Based on the calculation of paired sample t-test, it can be seen that the average value Figure 3. Indonesia’s Economic Growth of EPS before performing IPO is largest than Various global factors which affect the after performing IPO. Thereafter, if the test is performance of real and financial sectors in applied based on the company’s type which Indonesia, one of the factor is the Fed’s is manufacture, hypothesis result says there normalization plan. It such as threat in the is no significant difference between the form of the capital outflow due to the Fed average of their earnings per share value 2 plans to raise the interest rates in order to years before and after performing IPO. attract the funds invested outside the United Meanwhile in services category, it tells that States back in order to raise the economic the average value of EPS before is largest sectors of United States itself. This problem than after performing IPO. has led to pressure on the Indonesia’s On the other hand, based on sectoral exchange rate, it can be seen from the graph categories which are finance; trade, services, below that the exchange rate tends to and investment; infrastructure and property; increase slowly in the lastest 5 years. Rupiah there are no significant difference between was pressured due to the uncertainty of Fed average value of EPS before and after, Fund Rate direction and in 2015 Rupiah had however only in finance sector that tells there reached the level of 14,000 IDR and by the is a difference. Thus, the strategy of being go end of the year closed at 13,864 IDR per US public or performing IPO was not improving Dollar or weakened 11.3% from the end of these company’s performance, proven by the 2014. Thus, this problem is resulting in high insignificant difference of the average of EPS cost of goods which is imported by Indonesia in all sector except finance. But overall, there to fulfil the domestic demand and at the same is a derivation of mean value between the time, in falling demand for Indonesian average of EPS before and after performing exports, and also lead in lowering liquidity IPO. Also, seeing from the standard deviation rates inside the country.

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This economic situation is affecting EXCHANGE RATE RUPIAH - USD Indonesia's purchasing power because of the 15000 prices of basic goods is highly priced. The result is a significant reduction in household 10000 consumption expenditure such as clothing,

5000 footwear, education, health, transport, communications, hotels and restaurants. A 0 significant reduction was also seen in 2011 2012 2013 2014 2015 motorcycles, automobiles, and residential homes sales. Only expenditures for food and Figure 4. Exchange Rate Rupiah-USD beverages and household items that are not The next factor which affect the influenced to a greater decline. Of course, the performance of real and financial sectors in reduction of public expenditure in different Indonesia is the drop in global oil prices which industrial sectors result in reduced demand led to the decline in commodity prices and for goods produced by large, medium, or China’s economic slowdown. Whereas China small enterprises. This problem is affecting as the main motor which is driving the Asian the performance of financial sector in economies. Then, Chinese government Indonesia. Dhwijhayanti and Naomi (2009) policy decided to devalue its currency due to also strengthen the argument that inflation weak export activity. influencing the profitability of the company, On the other hand, Indonesia with a especially in banking industries, because it highest degree of dependence on imported will affects on the highly operational cost and products, resulting in further widening current the increment of BI rates affects the interest account deficit. the inflation rate maintained and will of the people to invest their fund in at the level of 3.35% or lower than the bank. inflation rate in 2014 amounted to 8.36% and Factors that made a decline progress in is within the range of 2015 inflation target set earnings per share can be caused by the by Bank Indonesia at 4% ± 1%. percentage decrease in is greater INFLATION RATE than the percentage decrease in the number

10,00% of ordinary or percentage 8,00% increase in the number of ordinary shares 6,00% outstanding is greater than the percentage 4,00% increase in net income. Value of earnings per 2,00% share would increase if the percentage 0,00% increase in net income is greater than the 2011 2012 2013 2014 2015 percentage increase in the number of ordinary shares outstanding (Weston and Figure 5. Inflation Rate in Indonesia Eugene, 1993). Nonetheless, Bank Indonesia preserved So that the internal reason for the the benchmark interest rate at 7.50% since insignificantly difference of EPS average February 2015 to the end of 2015 to maintain value that happened in some sector of the stability of the Rupiah and directing the companies which performed IPO in 2013 is current account deficit towards healthier about the ratio net profit the companies’ level. gained to the number of shares. The BI RATES decrement of EPS average mean before and

8% after IPO may caused by the insignificant increment of net profit but a large number of 7% distributed shares, or the descent of net profit 6% and there is no reducing the number of 5% shares. So for the company, the value of EPS 4% will have good growth if the percentage of net 2011 2012 2013 2014 2015 profit is bigger than the increment percentage

Figure 6. Bank Indonesia Interest Rate number of shares distributed.

Analysis of Earning Per Share Putri 5 Proceeding of 9th International Seminar on Industrial Engineering and Management ISSN : 1978-774X

The internal reason for the insignificantly It can be seen on the table that BBMD or difference of EPS average value that PT Bank Mestika Dharma has the bigest happened in some sector of companies amount of total , counted as 9,409 which performed IPO in 2013 is about the billion IDR. In having SWOT analysis, PT ratio net profit the companies’ gained to the Bank Mestika Dharma can be considered as number of shares. The decrement of EPS representative of financial sector because of average mean before and after IPO may its number of total assets compared to the caused by the insignificant increment of net other companies. profit but a large number of distributed shares, or the descent of net profit and there 4. ANALYSIS is no reducing the number of shares. So for the company, the value of EPS will have good Details of the information for the external growth if the percentage of net profit is bigger environmental analysis on the PT Mestika than the increment percentage number of Dharma Tbk as representative company in shares distributed. financial sector. The value of weight is So based on the problem, it is obtained from AHP method calculation of hypothesized that: transformed questionnaires’ answer by H0 : There is no difference in earnings expert judgement. The consistency of per share average before and after IPO external factors is 9.56% which considered H1 : Average earnings per share before as consistent. The external factor summary IPO is greater than the average of earnings can be seen in the following table: per share after IPO Table 3. External Factor Analysis Summary It can be summarized in the table below: External Factors Analysis Summary (EFAS) Table 1. Summary of Paired Sample T-Test Weighted Result Opportunities Weight Rating Score Sector Sig. Conclusion Indonesian Manufacture 0.468 Accept H0 economic 0,202 3 0,607 growth Financial 0.002 Reject H0 The growth of Trade, Services, 0.092 Accept H0 economic 0,130 2 0,260 and Investment sector Infrastructure and Government 0.745 Accept H0 0,192 3 0,576 Property policy Fast Financial sector has conclusion of technology 0,036 3 0,107 rejecting H0 which means that the average development value of EPS before it perform IPO is bigger Subtotal 0,560 Subtotal 1,550 than after perform IPO. Meanwhile the other sector has no different between before and Weighted after perform IPO. So that the financial sector Threats Weight Rating Score is preference to be analyse later. Competitor On the financial sector, here is the has more summary of total assets of the companies in 0,120 2 0,241 sophisticated which performing IPO in 2013. technology Table 2. Summary of Total Assets In Financial Sector Plenty of kindly Stock Total Assets products 0,119 2 0,238 Code offering more BBMD Rp 9.409.000.000.000 advantages NOBU Rp 6.703.377.000.000 Plenty of BMAS Rp 5.343.936.000.000 various kind of IMJS Rp 5.022.000.000.000 product 0,057 2 0,114 NAGA Rp 2.038.205.000.000 offered by VICO Rp 1.288.167.000.000 competitors

Analysis of Earning Per Share Putri 6 Proceeding of 9th International Seminar on Industrial Engineering and Management ISSN : 1978-774X

Deceleration Therefore, it can be concluded that PT Bank of global Mestika Dharma Tbk is in cell 5, which can be 0,144 2 0,288 economic classified as stable and grow area. growth PT Bank Mestika Dharma Tbk as the Subtotal 0,440 Subtotal 0,880 represntative of financial sector that performs Total 1,000 Total 2,430 IPO in IDX year 2013 is located in 5th cell, Meanwhile, by the same AHP method and which means that the strategy used may be the consistency value is 9.77%, here is the growth strategy and stability strategy. For details of the internal information which is integrative strategy is using a horizontal rated from the annual reports of PT Mestika integration that seeks greater ownership over Dharma Tbk as its internal environmental competitors. As for stability strategies, there factor can be seen as follows: will be no change in profit strategy. The Table 4. Internal Factor Analysis Summary details of the strategies that can be done is Internal Factors Analysis Summary as follows: Weighted High Average Low Strengths Weight Rating 4 3 2 1 Score 3 1 2 Good RETRENCHMENT implementation 0,059 3 0,178 High GROWTH GROWTH of GCG Ability to 3 5 4 minimize on 6 GROWTH 0,329 2 0,657 STABILITY risk Average RETRENCHMENT management STABILITY

Good 2 9 7 performance of 0,256 3 0,769 8

INDUSTRY ATTRACTIVENESS INDUSTRY RETRENCHMENT GROWTH financial report Low GROWTH Good of human capital 0,103 2 0,206 1 management Figure 7. Internal-External Matrix Subtotal 0,747 Subtotal 1.811 From the pictures and the table above are based on the calculation SWOT, PT Bank Weighted Mestika Dharma cell 5 in which policy Weaknesses Weight Rating Score direction PT Bank Mestika Dharma is in a Poor CSR 0,021 4 0,084 state of stable growth strategy. Lack of Hunger & Wheelen (2003) said that the technology 0,061 2 0,122 growth strategy is the strategy most utilization commonly sought, companies doing Weak in business in a dynamic environment should product and 0,069 2 0,138 continue to grow in order to survive. A firm services can achieve horizontal growth by expanding Ineffective its operations into other geographic locations marketing and and/or by increasing the range of products 0,102 2 0,204 promotional and services offered to current markets. strategy Research indicates that firms that grow Subtotal 0.253 Subtotal 0.547 horizontally by broadening their product lines Total 1,000 Total 2.358 have high survival rate. Horizontal growth Execution of Internal-External Matrix results in horizontal integration—the degree Strategy comes from the results of the to which a firm operates in multiple external and internal environmental analysis. geographic locations at the same point on an The score which obtained from the data has industry’s value chain. Horizontal growth can total weight of EFAS matrix is 2.430 which be achieved through internal development or shows a moderate external position and the externally through acquisitions and strategic total weight score of the IFAS matrix of 2.358 alliances with other firms in the same which show moderate internal position. industry. The stable growth in its

Analysis of Earning Per Share Putri 7 Proceeding of 9th International Seminar on Industrial Engineering and Management ISSN : 1978-774X development strategy means PT. Bank Provide the best banking services and Mestika Dharma can use growth strategy role appropriate in accordance with the principles but done in stages according to the priority of good implementation of risk management, scale. The strategy is supported by the open, prudent and meet the standards of alternative and an opportunity to attract more Good Corporate Governance (GCG) and customers by developing products and maintain bank healthiness and GCG at a services to satisfy customers. The first aspect good level. It can be done by improving the and action recommended to PT Bank Mestika efficiency of the company's performance by is maintain the performance of improving the competence of Human at good state. Resources that will ultimately result in the Based on Taswan (2006), ROA ratio increase of service to the parties who has should be higher than 0.5 % and ROE should interest in the Bank, such as customer, be higher than 5%. Bank Mestika has ROA of regulator, government, employees, and 3.53%, it values above the average of ROA in shareholders; increasing the active banking industry which is 2.32% meanwhile supervision of the Board of Commissioners ROE of Bank Mestika is valued 11.24% in and responsibilities in implementing the 2015. The other financial qualification in principles of prudential banking principles profitability ratio are NIM ratio which should according Integrated Governance; improving be higher than 1.5% and BOPO ratio which the role of all organs of governance to protect should beless than 96%. Bank Mestika has the company from potential lawsuits, NIM ratio of 8.13% and BOPO ratio 68.58%. penalties, and reputational risk caused by the Then Bank Mestika has reach the good state disobedience of the company against the of financial ratio criteria. ROA and ROE are regulations in force. use the profits as a way to assess the To support the implementation of the effectiveness of the use of assets or capital compliance function continuously, then the the company in generating profits. In order to application of the compliance function and achieve bank efficiency, one of the way is to increased emphasis on creating a culture of increase operating income by minimizing compliance through Inform the existence of operating costs. BOPO is the ratio of rules to be used as guidelines, conduct operating to operating income. socialization and a seminar on the new Operating costs are incurred by the bank in provisions of both internal and external, order to run its core business activities such provides the media to read and give as interest expenses, marketing costs, labour knowledge about the rules, monitor costs and other operating costs. Operating compliance with regulations on the income is the main income of the bank that is implementation of the operations of the Bank. the income earned from the placement of In addition to these measures, the Bank funds in the form of credit and other operating also proactively promoting a culture of income. While NIM is influenced by changes compliance through the delivery of training in interest rates and asset quality. Banks and socialization to employees regarding the need to be cautious in giving credit to increase of Culture of Compliance, productive assets quality is maintained. Thus, Implementation of Compliance Function, companies need to increase and Policy Compliance, Code Compliance, minimize operating costs such as by growing Implementation Guidelines for Anti-Money awareness of the costs (cost conscious Laundering and Combating the Financing of culture) in the minds of every employee. This Terrorism, internal and external regulations allows the employee attempted to obtain the and other matters related to the best price for each bid and contracts that are implementation of the precautionary geared to the company. Then, companies principle, in order to carry out the task must invest in information technology (IT). employees are always guided by the rules Because IT investment is very important for and laws that apply. With all these efforts, the the continuity of banking operations. Due to Bank confident of being able to identify the their excellent IT infrastructure, the cost could problems regarding compliance early on and be lower and increased competitiveness. maintain the culture of compliance at the Bank Mestika Dharma.

Analysis of Earning Per Share Putri 8 Proceeding of 9th International Seminar on Industrial Engineering and Management ISSN : 1978-774X

New breakthrough efforts of other banking should give good gift offers to customer in products and innovation, both in terms of order to make them loyal and increase the features, services, and ease of access in the interest of new-customer. Gift is one form of transaction for the customer. By developing appreciation of the good promotion strategy internet banking and mobile banking in order and affect good result in the future. to improve services to customers and to Being go public, company should do more participate in promoting branchless banking effort in order to maintain the position in the program; increasing the number of branch market. If investor’s interest is not offices and the ATM distribution. Sumatra as maintained, it may cause to the declining its segment, PT Bank Mestika should build trading. When the trading of shares is decline, more distribution service center in order to company will have less from the advantages gain more customer in other area of Sumatra, of IPO such as the liquidity or capital funding. so it can be focused; collaborating with other The public company performance is also parties to make an integrated system such as reflected in the value of its stock. master payment in order to make Management faced the pressure to balance improvement of service and ease of access company’s term with long term goals. in the transaction. Such as payroll services so Negative development such as the earnings then the company may gain more customers. of company is lower than company expected Strengthen and maintain the management before can affect in stock value. And system and organizational development and management should ensure that all the human resources, and information communication is good between external technology system banking services and parties by explained fully in the company’s operations. Such like increase competence in report. So the transparency in reporting will terms of human resources through the make greater market trust to the company. Academy Mestika and build or upgrade the Earning is one of the factor that affect information technology. Conduct variety of public perception to a company. Definitely, activities, one of them is to conduct regular the company should maintain or improve the training activities continuously. The training characteristic that is desired before going according to the standards of banking public such as the earning or financial growth competence, quality of the training is and sustainability of the company. Will it expected to provide a foundation as a satisfy the expected rate or profit to professional banker delivered some investors? The second one is the visibility and important materials including banking, public perception of the company’s products product knowledge, leadership, risk and services. Company should build the management, regulatory discipline, law, and sustainability positive image to investors, professional ethics. customers, and also community because the The product and services innovation and attitude and public perception will affect the developments, collaborate with other parties interest of investors to the company. Then, to improve distribution and services quality as the capability and committed management expand its distribution to be reached by who plays a great role about the decision or consumer, these are to be expected in order how the company will perform. to develop marketing aspect besides improving its promotional strategy. Another 5. CONCLUSION marketing and promotional strategy that can be done by PT Bank Mestika are to improve Based on the data processing and data the service quality to the customer. Customer analysis, manufacture sector; trade, services, satisfactory takes very important part as a and investment; infrastructure and property form of efficient marketing strategy. sectors have no significant different in Therefore, PT Bank Mestika should improve average of EPS value before and after by giving nice, friendly, and fast services, fulfil perform IPO. Meanwhile, financial sector has the need of the customer, also give average value of EPS before IPO is larger interesting lower credit interest rather than than after IPO with the significant value is competitor; do gift strategy in order to gain 0.002 and the confidence interval of 95% by and maintain the customer, Bank Mestika

Analysis of Earning Per Share Putri 9 Proceeding of 9th International Seminar on Industrial Engineering and Management ISSN : 1978-774X using paired sample t-test calculation position in the market and have greater method. market trust to develop the company and be Companies who performed IPO in 2013 more sustainable for long term. encounter the global and internal economics issues such as the Fed’s normalization plan 6. REFERENCES where affect to inflation rate, BI rates, and also the slowing the Indonesia’s economic (a) Badan Pusat Statistik website. [Online]. growth. And also the company performance 2016. http://www.bps.go.id/ Accessed in gaining earnings or the management in 15.05.16 distributed shares. PT Bank Mestika Dharma (b) Bank Indonesia website. [Online]. 2016. Tbk is chosen company for analyzing the http://www.bi.go.id/ Accessed 15.05.16 strategy which is financial sector that have (c) Indonesian Stock Exchange website. the different change of EPS value before and [Online]. 2016. http://www.idx.co.id/ after IPO based on its biggest market share Accessed 15.05.16 by total asset in the financial sector perform (d) Dwijayanthy, & Naomi. (2009). Analisis IPO year 2013. pengaruh inflasi, BI rate dan nilai tukar mata uang terhadap profitabilitas bank By using AHP method in calculating periode 2003 – 2007. Universitas priority weight factor of SWOT analysis, Paramadina Jakarta. Karisma, Vol. 3 (2), SWOT can be used in formulate and 87 - 98. determine the best strategies for companies (e) Hsun and Tzu. (2003). Initial Public in order to sustain and be able to reach the Offering and Corporate Governance in company goals. There are some internal China's Transitional Economy. National factors in determine competitive strategy in Bureau of Economic Research. PT Bank Mestika Dharma Tbk as financial (f) Hunger, D., & Wheelen, T. (2003). sector which are good risk management, Strategic Management and Business implementation of good corporate Policy, Chapter 7. Yogyakarta: Andi. governance, strength in product and services (g) Jain, B. A., & Kini, O. (1994). The Post- offered, financial ratio performance, human Issue Operating Performance of IPO capital management, effectiveness of Firms. Journal of Finance, 1699-1726. marketing and promotional strategy, usage of (h) Kim and Ritter. (1999). Valuing IPOs. information technology, and the corporate Journal of Financial Economics, 409- social responsibility. There are some external 437. factors in determine in determine competitive (i) Kinyua, J., Nyanumba, P. M., Gathaiya, strategy in PT Bank Mestika Dharma Tbk as R. N., & Kithitu, J. W. (2013). Effects of financial sector which are Indonesian Initial Public Offer on Performance of Companies Quoted at the Nairobi Stock economic growth, the growth for economic Exchange. IJMBS Vol. 3 Issue 1. sectors, fast technology development, (j) Kuncoro, M. (2004). Metode Riset untuk government policies, competitor’s various Bisnis dan Ekonomi. Jakarta: Erlangga. product, competitor’s more sophisticated (k) Kuria, E. G. (2014). The Effects of Initial technology, competitor’s more advantages Public Offering on The Financial products, and the global economic growth. Performance of Companies Listed at These internal and external factors are The Nairobi Securities Exchange. weighted by AHP methods of expert Research Project University of Nairobi. judgement. (l) Pastusiak, R., Bolek, M., Malaczewski, Strategies to determine the competitive M., & Kacprzyk, M. (2016). Company strategy at PT Bank Mestika Dharma Tbk is Profitability Before and After IPO. Is It horizontal strategy in stable growth position Windows Dressing or Equity Dilution which means that in the banking industry Effect? Prague Economic Papers, 112- competition is using growth strategy and in 124. gradually actions accordance with the priority (m) Prastowo and Juliaty. (2008). Analisis scale. Strategies to after-IPO companies is to Laporan Keuangan: Konsep dan Aplikasi maintain and improve their performance by (2nd ed.). Yogyakarta: UPP STIM YKPN. financial, product and services, or (n) Purba, J. H. (2006). Analisis Kinerja Keuangan Emiten Sebelum dan management capability in order to keep the Sesudah Masuk Bursa Studi Kasus pada

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PT. X. Jurnal Ilmiah Ranggagading, 31- (v) Wang, C. (2005). Ownership and 35. Operating Performance of Chinese (o) Rangkuti, F. (2013). ANALISIS SWOT: IPOs. Journal of Banking & Finance, Teknik Membedah Kasus Bisnis. 1835-1856. Jakarta: PT Gramedia Pustaka Utama. (w) Weston, J., & Brigham, E. (1993). (p) Ritter, J. R. (1994). The Market's Essential of Managerial Finance (10th Problems with The Pricing of Initial ed.). USA: The Dryden Press. Public Offerings. Journal of Applied , 66-74. (q) Saaty, T. L. (2008). Decision Making AUTHOR BIOGRAPHIES with the Analytic Hierarchy Process. Int. J. Services Sciences, 1(1). Retrieved Dewa Ayu Jessica Putri is a student in from Department of Industrial Engineering, Faculty http://www.colorado.edu/geography/leyk/ of Industrial Engineering, Telkom University, geog_5113/readings/saaty_2008.pdf Bandung. She received her Bachelor of (r) Sulistyanto and Wibisono. (2003). Good Industrial Engineering from Telkom Corporate Governance: Berhasilkah University Bandung in 2016. Her research Diterpakan di Indonesia? Widya Warta. interests are in the area of Strategic and (s) Taswan. (2006). Manajemen Perbankan. Financial Management. She is a member of Yogyakarta: UPP STIM YKPN. the Techno Economy Laboratory in Research (t) Tjiptono and Hendry. (2001). Tjiptono and Development Division. Her email and Hendry, 2001. Jakarta: Salemba address is Empat. (u) Wamari, E. W. (2014). The Effect of Initial Public Offers on Long run Stock Performance: Evidence from the Nairobi

Securities Exchange. International Journal of Scientific and Research Publications.

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