scherzo naiborhu - Profile on Academia.edu (original) (raw)

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The research examined what factors that significantly affect IPOs underpricing as well as investi... more The research examined what factors that significantly affect IPOs underpricing as well as investigated the significant evidence of long-term underperformance of the IPOs on the Indonesian market. There are two main theories about IPOs underpricing, which are asymmetry information and signalling theories. Due to the asymmetric information between issuers and investors, firms tend to send signals to attract investors by underpricing their stock price on the first day of trading. However, underpricing is not the only way to send a signal to the investors that the firm has excellent quality. There are numerous signals, which the study includes five of them based on previous researches and literature. They are underwriter reputation, firm's age, board size, firm's size, and financial leverage. Therefore, the study investigated whether those five aspects have a significant relationship with the IPOs underpricing.

The research examined what factors that significantly affect IPOs underpricing as well as investi... more The research examined what factors that significantly affect IPOs underpricing as well as investigated the significant evidence of long-term underperformance of the IPOs on the Indonesian market. There are two main theories about IPOs underpricing, which are asymmetry information and signalling theories. Due to the asymmetric information between issuers and investors, firms tend to send signals to attract investors by underpricing their stock price on the first day of trading. However, underpricing is not the only way to send a signal to the investors that the firm has excellent quality. There are numerous signals, which the study includes five of them based on previous researches and literature. They are underwriter reputation, firm's age, board size, firm's size, and financial leverage. Therefore, the study investigated whether those five aspects have a significant relationship with the IPOs underpricing.

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