EVIEWS ANALYSIS : UNDERPRICING DETERMINANTS AND IMPLICATIONS ON LONG-TERM UNDERPERFORMANCE SHARES IPO ON INDONESIA STOCK EXCHANGE (BEI) HAMILAH, MAKMURI AND GUSMIARNI

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This study aims to analyze factors that influence companies doing Underpricing at the moment, companies conduct IPOs in the stock market and its implications on Long-Term Underperformance in proxy with JCI on IPO shares in IDX. Analysis of phenomena. By using sample data onto IPO implementation for years 2006 until IPO 2011 with period of 5 year for every implementation of IPO, method done by using Sampling Purposive Method. The first analysis based on the data onto companies conducting initial public offering (IPO) in BEI during the period 2006 to 2011, underpricing average by 83 percent. The average initial return to companies underpricing during the IPO during the period 2006 to 2011 average initial return to 31 percent, and the highest in 2007 with Initial Return of 40 percent and the lowest occurred in 2011 by 20 percent. The second analysis shows that the average of the age variable of company, the value of cavitation, the volatility effect on the level of underpricing in the company conducting Initial Public Offering (IPO). While the Company Size Variable, Interest Rate and Rupiah Exchange Rate are not significant. For the third analysis, the long-term performance of IHSG after firm IPO is significantly influenced by the Companys Age variables, Capitalization Value, Volatility, Interest Rate, and Rupiah Exchange Rate, while the variables in Company Size influence is not significant. This study reinforces the asymmetric information theory of underpricing phenomena, due to information asymmetry between underwriters and firms. Differences in information are supported by agency theory and signal theory, whereby information published as an announcement will provide a signal to investors in making investment decisions.

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Sep 07, 2018

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92 views19 pages

EVIEWS ANALYSIS : UNDERPRICING DETERMINANTS AND IMPLICATIONS ON LONG-TERM UNDERPERFORMANCE SHARES IPO ON INDONESIA STOCK EXCHANGE (BEI) HAMILAH, MAKMURI AND GUSMIARNI

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This study aims to analyze factors that influence companies doing Underpricing at the moment, companies conduct IPOs in the stock market and its implications on Long-Term Underper…

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