The Relationship Between Financial Performance, Underwriter Reputation and IPO Underpricing
DOI:
https://doi.org/10.55927/jambak.v5i1.6Keywords:
CR, ROA, Underwriter Reputation, Underpricing, Initial Public OfferingsAbstract
The purpose of this study is to empirically demonstrate the influence of the Current Ratio (CR), Return on Assets (ROA), and underwriter reputation on IPO underpricing levels on the IDX for the 2016-2025 period. The sample size for this study was 427 IPO companies. The results of multiple linear regression analysis in this study showed that the CR variable is not affecting IPO underpricing. This is suspected because potential investors do not consider the CR value, which reflects the company's short-term prospects, but rather long-term prospects such as the ROA variable and the underwriter's reputation. This is empirically proven through research findings that show ROA variables have an impact and that underwriter reputation have an effect on IPO underpricing.
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