Research Article
The Effect of Return on Assets, Current Ratio, Debt to Equity Ratio and Underwriter's Reputation on Underpricing During Initial Public Offering (IPO) on The Indonesia Stock Exchange in Period 2014-2018
@INPROCEEDINGS{10.4108/eai.26-9-2020.2302725, author={Jenniari Shella Damanik and Ferikawita M. Sembiring}, title={The Effect of Return on Assets, Current Ratio, Debt to Equity Ratio and Underwriter's Reputation on Underpricing During Initial Public Offering (IPO) on The Indonesia Stock Exchange in Period 2014-2018}, proceedings={Proceedings of The International Conference on Environmental and Technology of Law, Business and Education on Post Covid 19, ICETLAWBE 2020, 26 September 2020, Bandar Lampung, Indonesia}, publisher={EAI}, proceedings_a={ICETLAWBE}, year={2020}, month={12}, keywords={current ratio (cr) debt to equity ratio (der) initial public offering (ipo) return on assets (roa) underwriter's reputation underpricing}, doi={10.4108/eai.26-9-2020.2302725} }- Jenniari Shella Damanik
Ferikawita M. Sembiring
Year: 2020
The Effect of Return on Assets, Current Ratio, Debt to Equity Ratio and Underwriter's Reputation on Underpricing During Initial Public Offering (IPO) on The Indonesia Stock Exchange in Period 2014-2018
ICETLAWBE
EAI
DOI: 10.4108/eai.26-9-2020.2302725
Abstract
This research was aimed to find out the influence of financial and non-financial information to underpricing in companies that conducted Initial Public Offering. Variables used in this study are Return on Assets (ROA), Current Ratio (CR), Debt to Equity Ratio (DER), and Underwriter's Reputation. The population in this research was the companies that conduct IPO listed in the Indonesia Stock Exchange within 2014-2018 outside the companies from banking. The data analysis uses multiple regression method and the samples of this study use purposive sampling method with the number of samples are 85 companies. The result showed that Return on Assets (ROA) and Underwriter's Reputation have significantly influenced the underpricing, while other independent variables such as Debt to Equity Ratio (DER) and Current Ratio (CR) have not significantly influenced the underpricing. The result showed that simultaneously Return on Assets (ROA), Current Ratio (CR), Debt to Equity Ratio (DER) and an Underwriter's Reputation have significantly influence the underpricing.
