Analysis of the Effect of Firm Size, Profitability and Capital Structure on IPO Underpricing on the Indonesia Stock Exchange (IDX)

miswanto, miswanto and Abdullah, Yanuar Rifqi (2020) Analysis of the Effect of Firm Size, Profitability and Capital Structure on IPO Underpricing on the Indonesia Stock Exchange (IDX). International Journal of Innovation, Creativity and Change, 13. ISSN 2201-1323

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Abstract

Underpricing often occurs in issuers that make IPOs on the IDX (the Indonesia Stock Exchange). Because underpricing is detrimental to the issuer, the study of factors that affect underpricing is very important. The aim of this study is to test the impact of firm size, profitability, and capital structure on underpricing in firms conducting IPOs. The sample of this study is firms that conduct IPOs in 2009-2016 and in the group of non-manufacturing firms. It is hypothesised that firm size and profitability have a negative effect on underpricing while capital structure has a positive effect on underpricing. The findings of this study are as follows: Firm size and profitability as measured by ROA (return on assets) have a significant negative effect on underpricing. However, profitability as represented by EPS (earnings per share) is not supported and has a negative effect on underpricing, and capital structure is also not supported and has a positive effect on underpricing.

Item Type:	Article
Uncontrolled Keywords:	Capital structure, firm size, profitability and underpricing.
Subjects:	MANAJEMEN > Sumber Daya Manusia
Divisions:	Dosen STIE YKPN > Artikel > Jurnal
Depositing User:	Unnamed user with email webmaster@stieykpn.ac.id
Date Deposited:	31 Mar 2023 07:36
Last Modified:	03 Apr 2023 02:02
URI:	http://repositorybaru.stieykpn.ac.id/id/eprint/829

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