The Effect Of Underwriter Reputation, Profitability And Leverage On Underpricing Shares At Initial Public Offering

An Nisa Diah Isnaeni, Najmudin Najmudin, Intan Shaferi

Abstract


This study aims to test empirically the effect of Underwriter's Reputation, Profitability and Leverage on Underpricing Shares at Initial Public Offering. This analysis uses independent variables, namely underwriter reputation, ROA as a measure of profitability and DER as a measure of leverage. Then, the dependent variable used is Underpricing. The object of this research is publicly traded companies listed on the Indonesia Stock Exchange (IDX) that conducted IPO’s from 2014 to 2018. During the observation period, there were 147 companies that made Initial Public Offerings which could be used as the research population.

Based on the purposive sampling method as a sampling technique, 61 companies were obtained as research samples with an observation period from 2014 - 2018. The type of data used is secondary data obtained from the websites of each company. The analysis tool used in this study is multiple linear regression analysis with the SPSS 16 program. The results of this study indicate that the Underwriter's Reputation has a positive effect on Underpricing. Profitability has a positive effect on Underpricing, and Leverage has a positive effect on Underpricing.

 

Keywords: Underpricing; Underwriter's reputation; Profitability and Leverage.


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References


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