Open AccessDeterminant of Initial Return of the Companies Doing Initial Public Offering on Indonesia Stock Exchange in 2014 - 2018
Author(s) -
Yohanes Martinianus Rada,
Bambang Santosoe Marsoem
Publication year - 2020
Publication title -
international journal of innovative science and research technology
Language(s) - English
Resource type - Journals
ISSN - 2456-2165
DOI - 10.38124/ijisrt20aug071
Subject(s) - initial public offering , underwriting , prospectus , stock exchange , business , reputation , abnormal return , monetary economics , share price , earnings per share , finance , economics , social science , sociology
Initial return is a benefit or loss for investors because of the difference between purchased price of shares in the primary market with the selling price of the relevant shares in the secondary market. With this situation, investors can enjoy or dont get the return of the stock purchase. Thus study focus on Initial Return Positive that is benefit for investor. This study aimed to determine the effect of ROE, DER, Share Ownership, Underwriter Reputation and Firm Ages to the initial return on the IPO companies in the Indonesia Stock Exchange. Samples were selected of 55 from two sectors that list in Indonesia Stock Exchangethat that is Trade, Services & Investment and Infrastructure, Utilities & Transportation with a purposive sampling technique. The data gathered the financial statement on the IPO company prospectus in the period of 2014 to 2018. The method of analysis used in this study is linear multiple regression analysis method. Result show that Underwriter Reputation partialy has signifikan effect on Initial Return. ROE, DER Share Ownership and Firm Age have effect to Initial Return