Analysis of Financial Factors that Influence Underpricing of Company Conducting IPO in Indonesia Period 2018


Authors : Ermawati Saputri, Bambang Santoso Marsoem

Volume/Issue : Volume 5 - 2020, Issue 3 - March

Google Scholar : https://goo.gl/DF9R4u

Scribd : https://bit.ly/3dlVeYu

Abstract : Indonesia Stock Exchange with companies to conduct an IPO. IPO is a company that was first traded on the secondary market. Underpricing is a condition when the price of shares on the initial public offering of shares is cheaper than the price of shares in the secondary market at closing usually called the initial return obtained by investors. In 2018, there were 58 IPO companies, compared to the previous year. The purpose’ of this study’ is to analysis of financial factors that influence underpricing of company conducting IPO in Indonesia period 2018. The’ factors used are company current ratio, size, return on assets, debt to equity, and earnings per share. The method used quantitative method with the type; of multiple linear regression research’. The population in this’ study were 58 companies conducting IPO in Indonesia period 2018 for 58 company. Determination of the number of samples was carried out using a non probability sampling method with a purposive; sampling’ technique and a sample’ of 53 companany was obtained. The’ results showed that company current ratio, size, return on assets, debt to equity, and earnings per share simultaneously influence underpricing.

Keywords : Current Ratio, Size, Return On Assets, Debt to Equity, Earnings Per Share, Underpricing.

Indonesia Stock Exchange with companies to conduct an IPO. IPO is a company that was first traded on the secondary market. Underpricing is a condition when the price of shares on the initial public offering of shares is cheaper than the price of shares in the secondary market at closing usually called the initial return obtained by investors. In 2018, there were 58 IPO companies, compared to the previous year. The purpose’ of this study’ is to analysis of financial factors that influence underpricing of company conducting IPO in Indonesia period 2018. The’ factors used are company current ratio, size, return on assets, debt to equity, and earnings per share. The method used quantitative method with the type; of multiple linear regression research’. The population in this’ study were 58 companies conducting IPO in Indonesia period 2018 for 58 company. Determination of the number of samples was carried out using a non probability sampling method with a purposive; sampling’ technique and a sample’ of 53 companany was obtained. The’ results showed that company current ratio, size, return on assets, debt to equity, and earnings per share simultaneously influence underpricing.

Keywords : Current Ratio, Size, Return On Assets, Debt to Equity, Earnings Per Share, Underpricing.

Never miss an update from Papermashup

Get notified about the latest tutorials and downloads.

Subscribe by Email

Get alerts directly into your inbox after each post and stay updated.
Subscribe
OR

Subscribe by RSS

Add our RSS to your feedreader to get regular updates from us.
Subscribe