The Influences of Prospectus Information and Macroeconomics on Initial Returns to Companies that Undergo Initial Public Offering (IPO) on the Indonesia Stock Exchange (IDX)

DOI

10.2991/978-94-6463-234-7_18How to use a DOI?

Keywords

initial public offering; initial return; macroeconomics; prospectus; underpricing

Abstract

Underpricing may be a phenomenon that always occurs throughout the world, including in Indonesia during an Initial Public Offering (IPO), which suggests that the worth at the time is less than the worth of the shares traded on the secondary market, the difference in price is defined because the initial return. This study examines the effect of ROA, firm size, firm age, inflation, and interest rates on initial return by involving some companies conducting Initial Public Offerings (IPOs) on IDX from 2016 to April 2022 as a population. The sample selection was administered by purposive sampling method and obtained a sample of 175 companies. This study uses multiple rectilinear regression analyses. The results of the t-test show that inflation and interest rates have a big positive effect on initial return partially. While ROA, firm size, and firm age do not have a significant effect on initial return partially. F-test results show that each variable simultaneously affects the initial return. From the results, it are often seen that the proper time to take a position in shares at the time of the IPO, should make a sale when there’s a negative signal within the sort of prospectus information and macroeconomic.

Copyright

© 2024 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Rinaldi Lubis
AU  - Isfenti Sadalia
AU  - Nisrul Irawati
PY  - 2023
DA  - 2023/09/29
TI  - The Influences of Prospectus Information and Macroeconomics on Initial Returns to Companies that Undergo Initial Public Offering (IPO) on the Indonesia Stock Exchange (IDX)
BT  - Proceedings of the 7th Global Conference on Business, Management, and Entrepreneurship (GCBME 2022)
PB  - Atlantis Press
SP  - 190
EP  - 205
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-234-7_18
DO  - 10.2991/978-94-6463-234-7_18
ID  - Lubis2023
ER  -