Research Article
Changes in Underpricing Due to Changes in Return on Assets, Debt to Equity Ratio, and Firm Size Analysis
@INPROCEEDINGS{10.4108/eai.17-7-2020.2302980, author={Kasmad Kasmad and Pranoto Pranoto and Muchammad Rafly Bhasnawi and Ali Maddinsyah and Denok Sunarsi}, title={Changes in Underpricing Due to Changes in Return on Assets, Debt to Equity Ratio, and Firm Size Analysis}, proceedings={Proceedings of the 1st International Conference on Economics Engineering and Social Science, InCEESS 2020, 17-18 July, Bekasi, Indonesia}, publisher={EAI}, proceedings_a={INCEESS}, year={2021}, month={1}, keywords={return on assets debt to equity ratio firm size underpricing}, doi={10.4108/eai.17-7-2020.2302980} }- Kasmad Kasmad
Pranoto Pranoto
Muchammad Rafly Bhasnawi
Ali Maddinsyah
Denok Sunarsi
Year: 2021
Changes in Underpricing Due to Changes in Return on Assets, Debt to Equity Ratio, and Firm Size Analysis
INCEESS
EAI
DOI: 10.4108/eai.17-7-2020.2302980
Abstract
The purpose of this study is to analyze the effect of Return on Assets, Debt to Equity Ratio, and Firm Size on the level of underpricing in non-financial companies conducting Initial Public Offering (IPO) on the Indonesia Stock Exchange in the period 2014 - 2017. The large population of this study was 74, and the samples obtained were 25 non- financial companies that experienced underpricing and met the requirements for sampling using purposive sampling. The results of simultaneous testing using the F test showed an F value of 2.141 and a significance level of 0.125, which means ROA, DER, and firm size together affect the level of underpricing but not significantly. R Square value obtained is 0.234, meaning 23.4% of the level of underpricing can be explained by ROA, DER, and firm size, while the rest can be explained by other variables. The t table value in this study is known to be 2.079. The value of t Calculate ROA is equal to -1.426 with a significance level of 0.169, ROA has no significant negative effect on the level of underpricing. The t-test value of DER is -0.841 with a significance level of 0.41, meaning that DER has no significant negative effect on the level of underpricing. Firm size is known to have a t table value of - 2.266 with a significance level of 0.034, meaning that the firm size has a negative and significant effect on the level of underpricing.