The Influence of Financial and Non-Financial Variables on Stock Underpricing
DOI:
https://doi.org/10.31941/jebi.v29i1.7421Abstract
This research focuses on examining several aspects that impact stock underpricing during the Initial Public Offering (IPO) process in Consumer Cyclicals sector companies listed on the Indonesia Stock Exchange during the 2020-2024 period. Underpricing is described as a common phenomenon that occurs when the stock exchange rate in the secondary market is above the offering price in the primary market, so it is important to analyze it to provide an overview of the risks and opportunities for investors. This research was conducted to analyze the influence of Return on Assets (ROA), Debt to Equity Ratio (DER), Underwriter reputation , company size, and company age on the level of underpricing. This study uses a quantitative method combined with a descriptive approach, using 46 companies as samples tested through multiple linear techniques, while the data analysis uses multiple linear regression analysis using SPSS. From the summary of the research findings, it is known that ROA and company age contribute significantly positively to underpricing, but DER, company size, and underwriter reputation have a significant negative influence. Overall, the combination of financial and non-financial variables can predict references for companies and investors in designing IPO pricing strategies.
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