Analysis of Factors Affecting Theunderpricing of Common Shares on Initial Public Offering (IPO) In Indonesia Stock Exchange (IDX)

Abstract

This research was aimed to examine the empirical effect of the
Underwriterreputation, Financial Leverage (DER), ROA, and Earning per Share on
under pricing companies which are listed in the Indonesian Stock Exchange. The
analysis was basedon the Underwriter Reputation, Financial Leverage (DER),
ROA, and Earning per Share as independent variables and under-pricing as
dependent variable. Samples of this research are companies which are listed in
Indonesian Stock Exchange.Samples were taken by purposive sampling method.
Documentation method was used as data collection technique.Normality test,
classical assumption test, multiplied analysis linear regression, with hypotheses
testing of statistic t-tests and statistic f-test were used as statistical methods.The
results of statistic t-tests showed that Financial Leverage (DER) and ROA had no
effects on under-pricing while Underwriter Reputation and Earning per Share were
affecting under pricing.
Keywords: [Under-pricing, Under-writer, DER, ROA, EPS]