ANALYSIS OF FACTORS AFFECTING UNDERPRICING STOCK IN INITIAL PUBLIC OFFERING IN INDONESIA STOCK EXCHANGE

摘要

Underpricing is a phenomenon of the stock price when the supply in the primary market is always lower than the closing price on the first day of trading in the secondary market. This study aims to determine the factors that affect the level of underpricing stock in Initial Public Offering in Indonesia Stock Exchange (IDX). Data analysis uses multiple linear regression method with significance rate of 5%. The objective of this research is to test the impact of variabel such as Debt to Equity Ratio (DER), Return on Assets (ROA) and Return On Equity (ROE) to underpricing stock. The sampling technique is purposive sampling method with total sample 57 out of 79 IPO companies in IDX in 2011-2013. The test result of Test-t and Test-F proves that all of the independent variables in this study namely Debt to Equity Ratio (DER), Return on Assets (ROA) and Return on Equity (ROE) have not partially and simultaneously significant effect on the level of underpricing stock.