Proceedings of the 7th Global Conference on Business, Management, and Entrepreneurship (GCBME 2022)

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The Effects of Fear Sentiment on Covid-19 on IPO Underpricing Moderated by Government Intervention

Authors
Rahadian Abby Putra1, *, Arief Wibisono Lubis1
1Magister Manajemen, Fakultas Ekonomika dan Bisnis, Universitas Indonesia, Depok, Indonesia
*Corresponding author. Email: rahadian.abby@ui.ac.id
Corresponding Author
Rahadian Abby Putra
Available Online 29 September 2023.
DOI
10.2991/978-94-6463-234-7_9How to use a DOI?
Keywords
Covid-19; Government Intervention; Investor Sentiment; Underpricing; Stock Market
Abstract

Underpricing is a phenomenon that often occurs when companies conduct IPOs. One of the factors that influence the occurrence of underpricing is investor sentiment. The current condition where there is a Covid-19 pandemic causes a sentiment of fear in investors. This level of fear can be reduced by reducing the spread of Covid-19. This study was conducted to find out the relationship between the sentiment of fear over Covid-19 and the level of underpricing in companies carrying out IPOs with government intervention as a moderating variable. This study uses a causal study approach and simple regression (ordinary least squares) as methods to analyze the data. The sample used in this study was 91 companies that carried out IPOs in 2020 and 2021 in the Indonesian capital market. The results of this study indicate that the sentiment of fear over Covid-19 has a significant positive relationship with the level of underpricing. Government intervention as a moderating variable increases the negative effect of fear sentiment over Covid-19 on the level of underpricing. It is expected the results of this study could contribute to the literature related to underpricing, and can be used as input for companies that will carry out IPOs.

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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Volume Title
Proceedings of the 7th Global Conference on Business, Management, and Entrepreneurship (GCBME 2022)
Series
Advances in Economics, Business and Management Research
Publication Date
29 September 2023
ISBN
978-94-6463-234-7
ISSN
2352-5428
DOI
10.2991/978-94-6463-234-7_9How to use a DOI?
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.

Cite this article

risenwbib
TY  - CONF
AU  - Rahadian Abby Putra
AU  - Arief Wibisono Lubis
PY  - 2023
DA  - 2023/09/29
TI  - The Effects of Fear Sentiment on Covid-19 on IPO Underpricing Moderated by Government Intervention
BT  - Proceedings of the 7th Global Conference on Business, Management, and Entrepreneurship (GCBME 2022)
PB  - Atlantis Press
SP  - 72
EP  - 82
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-234-7_9
DO  - 10.2991/978-94-6463-234-7_9
ID  - Putra2023
ER  -