| dc.description.abstract | Laily M. D., Heldi (2007). Analysis of factors influencing the underpriced level in Jakarta Stock Exchange (JSX) from year 2001 to 2004. Yogyakarta. International Program, Faculty of Economic. Islamic University of Indonesia.
Underpricing is a condition where emiten share price in the primary market is lower than its share price in the first day of secondary market trading. This phenomenon caused by the misspricing in the primary market as an effect of imbalance information between underwriter and emiten or referred as information asymmetry. Underwriter is assumed to have more accurate information regarding company's shares demand compared to the company itself
This study is aims at investigating whether the underpriced level in Jakarta Stock Exchange market during the period of 2001 up to 2004 is influenced by the underwriter reputation, percentage of shares which are still owned by old stockholders, company scale, company age, financial leverage, and returns on assets (ROA), either individually or jointly. This study uses multiple regressions analysis. There are 55 companies left from the total of 71 companies which were conducting IPO in Jakarta Stock Exchange (JSX) during 2001 up to 2004.
The result shows that company size variable is proven to have negative significant influence to the underpriced level. While underwriter reputation, percentage of shares which are still owned by old stockholders, company age, financial leverage, and return on assets are not proven to have, neither positive nor negative, significant influence to the underpriced level. | en_US |
