scholarly journals IPO Under-pricing Phenomenon Approach: Does Covid-19 Has a Negative Sectoral Impact?

2021 ◽  
Vol 4 (2) ◽  
pp. 207-221
Author(s):  
Rini Dwiyani Hadiwidjaja ◽  
Arianto Muditomo ◽  
Yanuar Trisnowati
Keyword(s):  
Initial Public Offering ◽  
Capital Market ◽  
Secondary Data ◽  
Industrial Sector ◽  
Industrial Sectors ◽  
Significant Difference ◽  
Sample Test ◽  
Negative Impacts ◽  
Public Offering ◽  
The Impact

An initial public offering (IPO) refers to the process of offering shares of a private corporation to the public in a new stock issuance. An IPO allows a company to raise capital from public investors. This study aims to prove the sectoral impact of the Covid-19 pandemic in Indonesia. Qualitative identification through content analysis on public online media and report documents on the results of analysis by research institutes and consultants identifies potential negative impacts on several industrial sectors as a result of the Covid-19 pandemic throughout 2020, but on the other hand, IPO action on the Indonesian capital market in 2020 still ongoing. Previous research has not been found specifically that analyzes the relationship between the impact of Covid-19 on industry and the performance of IPO actions per industrial sector, then through the IPO under-pricing phenomenon approach, empirical evidence is carried out. This research uses secondary data for the initial returns of 315 companies that conducted IPO actions during the period 2010 to 2020 on the Indonesian capital market and testing using a paired sample test on the population of IPO actions before and during the Covid-19 pandemic, the results of this study indicate that simultaneously in all the corporate sector did not find any statistically significant difference in initial returns between the period before and during the pandemic. This shows that the Covid-19 pandemic does not directly impact the behavior of capital market investors, especially in making investment decisions in the primary market.

scholarly journals The Impact of Internationalization of Sarbanes-Oxley Act to the U.S. Listed Indonesian Companies

2020 ◽  
Vol 1 (2) ◽  
pp. 31-41
Author(s):  
Ahmad Fauzi ◽  
Asri Sitompul
Keyword(s):  
Stock Market ◽  
Initial Public Offering ◽  
Capital Market ◽  
Stock Exchange ◽  
Stock Exchanges ◽  
The Public ◽  
Sarbanes Oxley ◽  
Public Offering ◽  
The Impact ◽  
The U.S

In every country the existence of capital markets is fundamental in the development of the economy. Capital market, in addition to its function as a means to gather and allocate the public funds. Numerous companies attempted to fix up in order to get into a stock market and do the Initial Public Offering (IPO). But it is not an easy job, various preparations should be carried out and of course it takes some time and effort and considerable cost. In addition to stock market laws, the market is also governed by various regulations issued by the market authorities and stock exchanges as the SRO. In the U.S., the authority is the SEC and in Indonesia the capital market authority is the OJK. Stock exchanges such as the NYSE in the U.S. and Indonesian Stock Exchange (BEI) in Indonesia also issued various rules regulate all companies listed the shares in the stock exchanges. Internationalization means to bring something local to the international level. The Sarbanes-Oxley Act is supposed to applicable only in the U.S, it is not applicable in Indonesia. But the law is brought from the U.S brought to Indonesia to be applied to Indonesian companies that have the stocks listed with the U.S stock market. The application of the Act brought some problems to Indonesian companies that have to comply with all requirements stipulated in the Act.

scholarly journals Impact of Currency Redenomination on an Economy: An Evidence of Ghana

2020 ◽  
Vol 13 (2) ◽  
pp. 62 ◽  
Author(s):  
Bright Obuobi ◽  
Emmanuel Nketiah ◽  
Faustina Awuah ◽  
Fredrick Oteng Agyeman ◽  
Deborah Ofosu ◽  
...  
Keyword(s):  
Quantitative Research ◽  
Secondary Data ◽  
Analytical Techniques ◽  
Economic Variables ◽  
Ex Post ◽  
Equality Of Means ◽  
Significant Difference ◽  
Sample Test ◽  
The Government ◽  
The Impact

The main objective of this study is to ascertain the impact of currency redenomination on the Ghanaian economy. Since independence in 1957, Ghana has had series of redenomination exercises but the recent one which became a debatable topic happened in 2007. As a result, the study is conducted to determine the pre and post-performance of the country using 2007 as the benchmark. This research takes into consideration the quantitative research technique based on ex-post factor design. Secondary data of the research variables (GDP, Economic growth, Balance of trade, inflation, FDI and Globalization index) were used over a 20-year period between 1997 and 2017. Analytical techniques of both descriptive statistics and independent sample test were used for the research. The t-test for equality of means adopted was to determine the statistically significant difference on the economic variables. The study also used the Levene’s test of equality of variance assumed. It was concluded that, currency redenomination is beneficial to an economy’s growth. It was therefore recommended that, the government of Ghana initiates policies that will boost local production to support the exercise so as to increase GDP and other associated economic variables.

scholarly journals PERBEDAAN EQUITY CROWDFUNDING DAN INITIAL PUBLIC OFFERING (IPO) DALAM HUKUM PASAR MODAL INDONESIA

2021 ◽  
Vol 5 (2) ◽  
Author(s):  
Widya Rahmadhani
Keyword(s):  
Initial Public Offering ◽  
Capital Market ◽  
Financial Services ◽  
Secondary Data ◽  
Main Concept ◽  
Normative Study ◽  
Equity Crowdfunding ◽  
Rule Number ◽  
Documentary Studies ◽  
Public Offering

Equity Crowdfunding is newly known in Indonesia. Indonesia’s Financial Services Authority passed new regulation that regulating Equity Crowdfunding through Indonesia Financial Services Authorities Rule Number 37/POJK.04/2018 regarding Equity Crowdfunding. Equity Crowdfunding concept considered similar to Initial Public Offering (IPO). Further, this research objective is to analyze Equity Crowdfunding from Indonesia’s Capital Market Law Perspective to find out if Equity Crowdfunding is remarkably similar to Initial Public Offering (IPO). This research is a normative study using documentary studies in the form of secondary data. The research was found that although there are similarities on the main concept between Equity Crowdfunding and Initial Public Offering, the two has distinguishing power. The research also found that there are some risks awaiting on the Equity Crowdfunding scheme.

scholarly journals DETERMINANT TRUE DISCOUNT PADA PENAWARAN SAHAM PERDANA PERIODE 2010-2014

2020 ◽  
Vol 7 (1) ◽  
pp. 46
Author(s):  
Puput Ragil Pratiwi ◽  
Tina Sulistiyani
Keyword(s):  
Initial Public Offering ◽  
Sampling Method ◽  
Stock Exchange ◽  
Secondary Data ◽  
Industrial Sector ◽  
Company Size ◽  
Underwriter Reputation ◽  
Maturity Type ◽  
Type Data ◽  
Public Offering

This study aims to obtain empirical evidence regarding DETERMINANT TRUE DISCOUNT IN PRESIDENT STOCK OFFERS 2010-2014. Diamana, Underpricing is proxied by True discount as the dependent variable and the Underwriter Reputation, Company Size, Company Age, Type of Company or Industry Sector, and Share Percentage offered as independent variables. The population in this study are all companies that made an initial public offering on the Indonesia Stock Exchange in 2010 to 2014 as many as 126 companies. The sample of this research were 80 companies taken from the population using purposive sampling method, besides that the researchers used secondary data type data. The results of this study indicate that the variable Company Size, Company Type or Industrial Sector, and the percentage of shares offered affect the True Discount given to investors in companies that register (register) on the Indonesia Stock Exchange in 2010-2014. While the Underwriter Reputation and Company Age variables do not affect the True Discount given to investors in companies that register (register) on the Indonesia Stock Exchange in 2010-2014. Then Reputation Underwriter (RU), Company Size (size), Age of Company (Maturity), Type of Company (JP), Percentage of Shares offered (PS) jointly affect the True Discount given to investors in companies that register (listing ) on the Indonesia Stock Exchange in 2010-2014.

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.

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 Corporate governance and IPO underpricing: evidence from the italian market

2021 ◽  
Author(s):  
Emanuele Teti ◽  
Ilaria Montefusco
Keyword(s):  
Corporate Governance ◽  
Initial Public Offering ◽  
Boards Of Directors ◽  
Stock Option ◽  
Board Members ◽  
Ipo Underpricing ◽  
Italian Market ◽  
Public Offering ◽  
The Impact ◽  
Positive Effect

AbstractThis paper aims to analyse the impact of firms’ corporate governance characteristics on the degree of first-day returns (i.e., underpricing) in the Italian initial public offering (IPO) market. In particular, this work investigates the impacts of the characteristics of boards of directors (BoDs) and ownership structure on the underpricing of newly offered shares. By studying a sample of 128 Italian IPOs between 2000 and 2016, it is concluded that corporate governance characteristics affect the degree of first-day returns following a company’s IPO. More specifically, the size of the BoD negatively affects underpricing, while the ownership of institutional investors and board members has a positive effect on the degree of underpricing. Conversely, no significant evidence is found with regard to board independence, the number of female directors in the boardroom, the implementation of stock option plans and ownership concentration.

Friends in high places : two essays on the importance of corporate political connections

2015 ◽  
Author(s):  
◽  
Reza Houston
Keyword(s):  
Initial Public Offering ◽  
Political Connections ◽  
Target Firm ◽  
University Of Missouri ◽  
Accounting Performance ◽  
The Public ◽  
Public Offering ◽  
The University ◽  
The Impact ◽  
The Relationship

[ACCESS RESTRICTED TO THE UNIVERSITY OF MISSOURI AT AUTHOR'S REQUEST.] This study is an examination of the relationship between political connections and the undertaking of major firm events. In our first essay, presented in Chapter 3, we examine the impact politically connected appointments have on firm acquisition behavior. Using proxy statements, we create a unique database of politically connected bidders and merger targets. We find that bidders who hire connected individuals to the board or management team are more likely to avoid merger litigation. Connected bidders make more bids after the appointment. These firms also bid on larger targets. We determine there is a positive relation between the control premium and the relative of the target's connections. Connected acquirers have superior post-merger accounting performance, particularly when they acquire a connected target firm. In the second essay, presented in Chapter 4, we examine the relationship between political connections of private firms and the initial public offering process. Using registration statement information, we create a unique database of politically connected IPO firms. We find that political connections are substitutes to high-quality underwriters and big four auditors. Politically connected firms manage earnings more highly upward than non-connected firms prior to the public offering. Politically connected firms also exhibit less underpricing than non-connected firms. Politically connected IPO firms also have superior post-IPO returns relative to non-connected IPO firms.

scholarly journals Comparison of the theoretical and practical approaches to funding through the IPO way in the Czech capital market

2008 ◽  
Vol 56 (6) ◽  
pp. 59-68
Author(s):  
Tomáš Meluzín
Keyword(s):  
Initial Public Offering ◽  
Capital Market ◽  
Western Europe ◽  
The United States ◽  
Bank Loans ◽  
Professional Literature ◽  
Mortgage Crisis ◽  
The Usa ◽  
Eastern European Countries ◽  
Public Offering

Funding development of the company through the “Initial Public Offering” has a high representation globally, the Czech Republic unlike, and belongs to traditional methods of raising funds necessary for development of business in the developed capital markets. In the United States of America, Japan and in the Western Europe countries the method of company funding through IPO has been applying for several decades already. The first public stock offerings began to be applied in these markets in higher volumes from the beginning of the 60th of the last century. From that period importance of IPO goes up globally and the initial public stock offerings begin to be applied more and more even in the Central and Eastern European countries. In the conditions of the Czech capital market it is possible to identify only few companies, who attempted to funding through the IPO way at present. Greater part of the Czech companies still undergo the debit funding for financing their further development, namely in the form of bank loans. At the same time it is necessary to take into account, that the debit financing starts, thanks to so-called mortgage crisis in the USA, causing problems and mark up. Admittance of a stakeholder into the company is not convenient for all and thus IPO represents an interesting option of how to acquire a no arrear capital. The aim of this article is to determine the IPO concept, analyse its development at the world stockholder markets, describe the reasons for IPO implementation according to the contemporary professional literature and compare it with the approaches to this particular form of funding with companies that have already implemented IPO at the Czech capital market.

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