scholarly journals Impact of Macroeconomic Factors on Underpricing: Case of Indonesia Stock Exchange

InFestasi ◽  
2021 ◽  
Vol 17 (2) ◽  
pp. Inpres
Author(s):  
Aulia Amin Nasution ◽  
Ali Mutasowifin
Keyword(s):  
Stock Market ◽  
Initial Public Offering ◽  
Stock Price ◽  
Stock Exchange ◽  
Composite Index ◽  
Secondary Market ◽  
Macroeconomic Factors ◽  
Macroeconomic Variables ◽  
Public Offering

The stock market is one of the alternatives chosen by companies to meet their funding needs. The first offering of a company's shares through the stock market to investors is called an Initial Public Offering. At the time of initial public offering, underpricing often occurs when the initial stock price on the primary market is lower than the stock price on the secondary market which will disadvantage the company because the collected funds are not maximum. This research aims to analyze the effect of macroeconomic factors on underpricing in companies conducting IPOs listed on the Indonesia Stock Exchange from 2010 to 2020. Using Regression Linear Analyze we found that macroeconomic variables as Inflation, IDX Composite Index, and GDP significantly affect underpricing on IPO in Indonesia Stock Exchange for 2010 to 2020

Pengaruh Reputasi Underwriter, Umur Perusahaan, dan Persentase Penawaran Saham 53 kepada Publik terhadap Underpricing

2016 ◽  
Vol 8 (1) ◽  
pp. 53-74
Author(s):  
Maria Jeanne ◽  
Chermian Eforis
Keyword(s):  
Initial Public Offering ◽  
Stock Price ◽  
Stock Exchange ◽  
Secondary Data ◽  
Secondary Market ◽  
Financial Statement ◽  
Data Set ◽  
Multiple Regression Method ◽  
Underwriter Reputation ◽  
Public Offering

The objective of this research is to obtain empirical evidence about the effect of underwriter reputation, company age, and the percentage of share’s offering to public toward underpricing. Underpricing is a phenomenon in which the current stock price initial public offering (IPO) was lower than the closing price of shares in the secondary market during the first day. Sample in this research was selected by using purposive sampling method and the secondary data used in this research was analyzed by using multiple regression method. The samples in this research were 72 companies conducting initial public offering (IPO) at the Indonesian Stock Exchange in the period January 2010 - December 2014; perform initial offering of shares; suffered underpricing; has a complete data set forth in the company's prospectus, IDX monthly statistics, financial statement and stock price site (e-bursa); and use Rupiah currency. Results of this research were (1) underwriter reputation significantly effect on underpricing; (2) company age do not effect on underpricing; and (3) the percentage of share’s offering to public do not effect on undepricing. Keywords: company age, the percentage of share’s offering to public, underpricing, underwriter reputation.

scholarly journals Evaluation of Investor Awareness on Techniques used in Stock Trading before their Investment

2018 ◽  
Vol 7 (3.12) ◽  
pp. 98
Author(s):  
B Vidhya ◽  
S Magesh
Keyword(s):  
Stock Market ◽  
Initial Public Offering ◽  
Success Factors ◽  
Stock Exchange ◽  
Secondary Market ◽  
Stock Trading ◽  
Risk Return ◽  
Public Offering ◽  
Indian Stock Market ◽  
Investor Awareness

Indian stock exchange is one of the world’s largest stock market. It holds 16,993,616 active demat account investors as on February 2018, where the investor trade the equities. An equity holding will make the investor to own a percentage of the company’s capital. The value of the investment raise as the company develops, initially it starts with Initial Public Offering (IPO) which will be allotted by the companies. This will be listed in stock exchange for secondary market. The investor decides whether to hold the stock for a longer or shorter period depending on the percentage of returns. Most of the research studies had concluded that Indian stock market is highly volatile, sensitive, reactive to news and unanticipated shocks. This instantly has an impact on the market trend activities, but it resilient and recovers soon. The investor aims for high returns on the investment, and experience a high risk . Since the direction of market is unpredictable and lack of knowledge for the success factors, leads to fear on investing in stock market. Practically the risk and returns are directly proportional. However the risk-return perceptions of the investor may vary.The aim of this study is to analyse acquaintance level of the investor in stocks trading and the technical knowledge to overcome the risk factors while trading in live market before investing.  

Macroeconomic Factors and Pakistani Equity Market”

2004 ◽  
Vol 43 (4II) ◽  
pp. 619-637 ◽  
Author(s):  
Muhammad Nishat ◽  
Rozina Shaheen
Keyword(s):  
Stock Market ◽  
Industrial Production ◽  
Stock Prices ◽  
Stock Price ◽  
Consumer Price Index ◽  
Reverse Causality ◽  
Macroeconomic Factors ◽  
Macroeconomic Variables ◽  
Equilibrium Relationships

This paper analyzes long-term equilibrium relationships between a group of macroeconomic variables and the Karachi Stock Exchange Index. The macroeconomic variables are represented by the industrial production index, the consumer price index, M1, and the value of an investment earning the money market rate. We employ a vector error correction model to explore such relationships during 1973:1 to 2004:4. We found that these five variables are cointegrated and two long-term equilibrium relationships exist among these variables. Our results indicated a "causal" relationship between the stock market and the economy. Analysis of our results indicates that industrial production is the largest positive determinant of Pakistani stock prices, while inflation is the largest negative determinant of stock prices in Pakistan. We found that while macroeconomic variables Granger-caused stock price movements, the reverse causality was observed in case of industrial production and stock prices. Furthermore, we found that statistically significant lag lengths between fluctuations in the stock market and changes in the real economy are relatively short.

APAKAH FAKTOR EKSTERNAL MEMPREDIKSI UNDERPRICING LEBIH BAIK DIBANDINGKAN FAKTOR INTERNAL? STUDI INITIAL PUBLIK OFFERING DI BEI TAHUN 2009-2017

2020 ◽  
Vol 7 (1) ◽  
Author(s):  
Saefudin Saefudin ◽  
Tri Gunarsih
Keyword(s):  
Interest Rates ◽  
Initial Public Offering ◽  
Stock Exchange ◽  
Sample Selection ◽  
Secondary Data ◽  
Secondary Market ◽  
Company Size ◽  
Negative Effect ◽  
Underwriter Reputation ◽  
Public Offering

Underpricing is a phenomenon that still occurs in the Indonesian capital market, where the offering price of shares in the primary market is lower than the opening price or closing price on the first day on the secondary market. This study aims to examine the effect of Return On Assets (ROA), Debt to Equity Ratio (DER), company size, underwriter reputation, age, and interest rates on the underpricing of shares in companies’s Initial Public Offering (IPO) listing on the Indonesia Stock Exchange (BEI) in 2009 to 2017. The population in this study are companies that conduct IPOs on the BEI period 2009 to 2017. The sample selection in this study uses a purposive sampling method, based on certain criteria. The sample in this study were 183 underpricing companies from 205 companies conducting IPO in the period 2009 to 2017. The data used in this study used secondary data. The multiple regression analysis was implemented in this study. The results showed that DER, company size, and underwriter reputation did not significantly influence underpricing. While ROA, age and interest rates have a significant negative effect on underpricing. In this study, investors consider ROA, age, interest rates compared to DER, company size, and the reputation of the underwriter to invest in companies that make an IPO.Keywords: Underpricing, Initial Public Offering, and Indonesian Stock Exchange.

scholarly journals Peran Growth Opportunities, Free Cash Flow, dan Relative Issue Size dalam Reaksi Pasar terhadap Pengumuman Right Issue

The Winners ◽  
2007 ◽  
Vol 8 (1) ◽  
pp. 24
Author(s):  
Synthia Atas Sari ◽  
Hartiwi Prabowo
Keyword(s):  
Initial Public Offering ◽  
Stock Price ◽  
Stock Exchange ◽  
Free Cash Flow ◽  
Final Conclusion ◽  
Growth Opportunities ◽  
Normal Period ◽  
Stock Price Reaction ◽  
Test Market ◽  
Public Offering

Right issue is when a firm announces its plan to publicly offer additional shares of common stock after Initial Public Offering (IPO). The aim of this research are to test market stock price and examine the role of growth opportunities in stock price reaction to right issue announcement. Sample was taking from companies which been listed in Jakarta Stock Exchange and publish right issue from 1998 to 2005. To measure growth opportunities, the companies were divided into 2 groups, growth and mature. This classification using Tobin’s q proxy method (market-book value ratio). The research have final conclusion, that is at right issue announcement in Jakarta Stock Exchange, market give positive reaction and statistically significant, and so in normal period.

scholarly journals Initial Public Offering Allocations, Price Support, and Secondary Investors

2016 ◽  
Vol 51 (5) ◽  
pp. 1663-1688 ◽  
Author(s):  
Sturla Lyngnes Fjesme
Keyword(s):  
Initial Public Offering ◽  
Stock Exchange ◽  
Secondary Market ◽  
Theoretical Interest ◽  
Price Support ◽  
Media Attention ◽  
The Past ◽  
Price Manipulation ◽  
Public Offering

Tying initial public offering (IPO) allocations to after-listing purchases of other IPO shares as a form of price support has generated much theoretical interest and media attention. Price support is price manipulation and can reduce secondary investor return. In the past, obtaining data to investigate price support has proven to be difficult. I document that price support is harming secondary investor return using new data from the Oslo Stock Exchange. I also show that investors who engage in price support are allocated more future oversubscribed allocations, whereas harmed secondary investors significantly reduce their future participation in the secondary market.

scholarly journals Analisa Korelasi Return Indeks – Indeks Saham terhadap Indeks Harga Saham Gabungan pada Bursa Efek Indonesia

2015 ◽  
Vol 6 (2) ◽  
pp. 330 ◽  
Author(s):  
Mulyono Mulyono
Keyword(s):  
Stock Market ◽  
Stock Price ◽  
Price Index ◽  
Stock Exchange ◽  
Composite Index ◽  
Stock Index ◽  
Stock Trading ◽  
Close Relationship ◽  
Coefficient Corrélation ◽  
Stock Price Index

Stock market generally has the stock price index that measures the performance of stock trading, the Indonesia Stock Exchange has a stock price index that is widely known as Jakarta Composite Index (IHSG). During its development, the Indonesia Stock Exchange has many alternative indexes that measure the performance of stock trading. Research that is to be conducted on the correlation between return of the stock index listed in Indonesia Stock Exchange and return of Jakarta Composite Index. Return stock index listed on the Indonesia Stock Exchange, namely, LQ45 Index, Jakarta Islamic Index (JII), KOMPAS100 Index, BISNIS-27 Index, PEFINDO25 Index and SRI-KEHATI Index, has a close relationship with the return Jakarta Composite,Index which is a reflection of the movement of all existing stock in the market. Return of stocks index that have the highest coefficient correlation is KOMPAS100 In dex, which have return index coefficient correlation is 0.949, thus KOMPAS100 Index that consisting of 100 stocks, based on the results of the study can be used as an alternative investment to get a return that is at least equal or close to the yield given by Jakarta Composite Index(IHSG) that consists of 445 stocks

scholarly journals Pengaruh Rasio Pembayaran Dividen terhadap Harga Saham PT Bukit Asam (Persero) Tbk Periode 2005-2015

2017 ◽  
Vol 7 (3) ◽  
pp. 200-213
Author(s):  
Afrian Destama ◽  
Musa Hubeis
Keyword(s):  
Initial Public Offering ◽  
Stock Prices ◽  
Stock Price ◽  
Stock Exchange ◽  
Secondary Data ◽  
Simple Linear Regression ◽  
Public Company ◽  
Dependent Variables ◽  
Independent Variable ◽  
Public Offering

PT Bukit Asam (Persero) Tbk (PTBA) is a large company engaged in the sub-sector of coal mining and has been listed in the Indonesia Stock Exchange (IDX) as a public company and was registered to have an Initial Public Offering (IPO) in year 2002. The investors as shareholders will strongly expect a high dividend every year (% per year). The annual dividend (in %) so called as Dividend payout ratio (DPR). The objective of the research are to analyze the effect of the DPR on stock prices of PTBA in the period 2005-2015 and as reference to determine dividend policy. The research secondary data was obtained from BEI, Indonesian Central Securities Depository PTBA. The simple linear regression model was developed in the research where the DPR stands for independent variable (y) and the dayly average stock price from the declaration dateto cum date stands for dependent variables. The results showed a positive relationship and unreal 42,3% between the DPR and the stock price of PTBA with the influence of 18,6%. But both variables do not have a linear relationship, so as to predict the stock price can not be done simply by using DPR as independent variables, but also need to consider other factors.

scholarly journals PENGARUH NILAI TUKAR TERHADAP HARGA SAHAM SETELAH INITIAL PUBLIC OFFERING (IPO)

2015 ◽  
Vol 3 (3) ◽  
pp. 761
Author(s):  
Denny Andriana
Keyword(s):  
Exchange Rate ◽  
Initial Public Offering ◽  
Stock Prices ◽  
Stock Price ◽  
Stock Exchange ◽  
Rate Variation ◽  
Price Variation ◽  
Analysis Technique ◽  
Simple Regression Model ◽  
Public Offering

This study aims to examine the effect of exchange rate on stock prices after Initial Public Offering (IPO) on companies listed on the Indonesia Stock Exchange. Observations made on 137 companies that conduct an IPO in the period of 2009 to 2014. The purposive sampling method undertaken in this study resulted in 78 companies that became the research sample. Data analysis technique used in this research is simple regression model. The test results prove that exchange rate has positive but not significant effect on stock price after IPO. The value of determination coefficient is 0.047 (4.7%) indicating that the exchange rate variation can only explain 4.7% against stock price variation after IPO. The other 95.3% is another variable not included in this study.

scholarly journals Determinants of Reluctance to Initial Public Offering in Cameroonian Financial Market

2021 ◽  
Vol 10 (4) ◽  
pp. 115-126
Author(s):  
Simplice Gaël Tonmo ◽  
Melissa Grace Tchapda Woumkep ◽  
Ghislain Tchoffo ◽  
Glwadys Pinta Mefenza
Keyword(s):  
Stock Market ◽  
Initial Public Offering ◽  
Stock Exchange ◽  
Pearson Correlation ◽  
The Family ◽  
Pearson Correlation Test ◽  
Financial Characteristics ◽  
The One ◽  
Public Offering ◽  
The City

The main objective of this study was to identify the specific characteristics of companies in Cameroon and to highlight the factors that explain their reluctance to be listed on the stock market. Thus, in order to build the state of the art appropriate to this objective, we had to follow three lines of investigation: the theories related to the listing of firms on the stock market, their specific characteristics, and the cross-fertilization of these two fields. On the basis of the literature, four explanatory hypotheses were deduced: they are related to the shareholding structure of firms, to the financial characteristics, to the size of the firm and to the socio-demographic characteristics of the managers. To test these hypotheses, a survey was conducted among 40 SAs in the city of Douala. The data was processed with the SPSS 20 software and we used flat sorting, cross-sorting, pearson correlation test as well as linear regression. This methodology allowed us to obtain the results according to which the family and filial character and the size of the company are mainly the factors of reluctance of the listing on the stock exchange on the one hand, and the behavioral factors of the company managers, in particular the level of education and the experience on the other hand.

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