Factors from Underwriter That Influence Initial Return of the Companies Doing Initial Public Offerings in Indonesia Stock Exchange in the Period of 2004-2011

Sugianto, Ferry and Wijaya, Liliana Inggrit (2016) Factors from Underwriter That Influence Initial Return of the Companies Doing Initial Public Offerings in Indonesia Stock Exchange in the Period of 2004-2011. Advances in Economics and Business, 4 (12). pp. 641-650. ISSN 2331-5059 (Print); 2331-5075 (Online)

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Abstract

The objective of this study is to examine whether the underwriter's factors affect the initial return of the companies that were going to do Initial Public Offerings (IPO). This study uses the quantitative approach using Ordinary Least Squares (OLS) method to examine whether the underwriter's factors affect the initial return. The samples of this study are companies which are doing the IPO in Indonesia Stock Exchange in the period of 2004- 2011. This study finds that the underwriter's factors have significant effect for the companies which do IPO, such as prestige, number of syndicate, experience, and oversubscription. But other independent variables like reputation, total assets, age, and price revision have no significant impact to initial return. The paper provides useful information for issuers how to choose good underwriters to avoid underpricing which causes wealth transfer to investors, the underwriters with good prestige, big syndicates, a lot of experiences, and less of doing oversubscription are recommended.

Item Type:	Article
Uncontrolled Keywords:	Stock, Initial Return, Underwriter, Issuer, Initial Public Offerings
Subjects:	H Social Sciences > HD Industries. Land use. Labor H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Divisions:	Faculty of Business and Economic > Department of Management
Depositing User:	Ester Sri W. 196039
Date Deposited:	07 Sep 2021 07:34
Last Modified:	07 Oct 2021 07:25
URI:	http://repository.ubaya.ac.id/id/eprint/40198

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