Underpricing Phenomenon and Stock Return after IPO

Andhi Wijayanto, Ascariena Rafinda, Dian Ariyani

2019

Abstract

The purpose of this study is to find out the influence of financial and non-financial factors in the company's prospectus that can affect underpricing and stock return 7 days after the IPO. This research using multiple linear regression analysis to measure the relationship between the dependent variable (initial return and return 7 days after the IPO) with independent variables (DER, TATO, ROA, PPS, and AGE). The existence of a high underpricing phenomenon leads to non-optimal funding by IPO companies. The company's goal of obtaining abundant funds is not achieved. In the market efficient theory, prices should have been agreed upon by the underwriter and the company to get a response according to company goals, but overly optimistic investor behavior makes prices go far beyond actual value so that underpricing occurs. This research complies financial and non-financial variables to find out the most influencing factors the occurrence of the phenomenon of underpricing of shares when the Indonesian capital market has been rose and broke the record with the most IPO in year 2013.

Paper Citation

in Harvard Style

Wijayanto A., Rafinda A. and Ariyani D. (2019). Underpricing Phenomenon and Stock Return after IPO. In Proceedings of the 2nd Economics and Business International Conference - Volume 1: EBIC, ISBN 978-989-758-498-5, pages 221-229. DOI: 10.5220/0009201802210229

in Bibtex Style

@conference{ebic19,
author={Andhi Wijayanto and Ascariena Rafinda and Dian Ariyani},
title={Underpricing Phenomenon and Stock Return after IPO},
booktitle={Proceedings of the 2nd Economics and Business International Conference - Volume 1: EBIC,},
year={2019},
pages={221-229},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0009201802210229},
isbn={978-989-758-498-5},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 2nd Economics and Business International Conference - Volume 1: EBIC,
TI - Underpricing Phenomenon and Stock Return after IPO
SN - 978-989-758-498-5
AU - Wijayanto A.
AU - Rafinda A.
AU - Ariyani D.
PY - 2019
SP - 221
EP - 229
DO - 10.5220/0009201802210229