Volume 2 Issue 3 | 2025 | View PDF
Paper Id:IJMSM-V2I3P110
doi: 10.71141/30485037/V2I3P110

Analysis of Factors Influencing Stock Underpricing in Initial Public Offerings on the Indonesia Stock Exchange for the 2019-2023 Period

I Gede Adiputra, Melody Hanlim, Harvin Yulianto

Citation:
I Gede Adiputra, Melody Hanlim, Harvin Yulianto, "Analysis of Factors Influencing Stock Underpricing in Initial Public Offerings on the Indonesia Stock Exchange for the 2019-2023 Period" International Journal of Multidisciplinary on Science and Management, Vol. 2, No. 3, pp. 92-103, 2025.

Abstract:
The problem that arises most of the time in an Initial Public Offerings (IPO) is that the share price at the point, which initial offer is at is relatively lower than what it is in the closing price when selling in the secondary market or denoted by underpricing. This research aimed at identifying the significant impact among Underwriter Reputation, Return on Asset, Company Size, as well as, Earning Per Share on Underpricing established in an IPO. The approach in this study is quantitative approach. The data utilized in the research are secondary data as financial reports of company companies in the food and beverage industries listed on the Indonesia Stock Exchange (IDX). The participants in this research were the firms that made IPO during the duration of 2019-2023 on the IDX. In this study, the same variables will be revisiting but with different sectors, and different years of research. The research methods include quantitative approach with the secondary data type in the form of financial reports, purposive sampling method and data analysis procedure with the aid of statistical tools with SmartPLS (Partial Leas Square) through multiple linear regression analysis, and the hypothesis testing with the help of t test. Findings of this research show that, underwriter reputation has strong negative impact on underpricing, that is, the level of impact is strong, return on assets has no significant impact on underpricing, debt to equity ratio has no significant effect on underpricing shares at the time of initial public ofifiering ( IPO).

Keywords: Underwriter, Return On Asset, Financial Leverage, Underpricing.

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