| dc.description.abstract | The capital market is generally a meeting place between supply and
demand for securities. In order to get additional funds, companies can do it in
various ways, one of which is by IPO (Initial Public Offering). IPOs are a way for
developing companies to get additional funds for financing and business
development. The problem that often arises from IPOs is when there is
underpricing, which shows that the actual stock price at the initial time is
relatively lower than when traded on the secondary market, therefore examining
the factors that affect underpricing at the time of the IPO. The formulation in this
study is the occurrence of underpricing, which shows that the actual stock price at
the initial time is relatively lower than when traded on the secondary market. The
purpose of this study is to analyze Return On Assets, Financial Leverage,
Underwriter Reputation, Auditor Reputation, Company Size on Underpricing at
the time of Initial Public Offering on the Indonesia Stock Exchange.
The type of research used is causal associative research with quantitative
research methods with data obtained through Eviews software with a significance
level of 5%. The results obtained are Return On Assets, and Underwriter's
Reputation have a significant positive effect on underpricing, while Financial
Leverage, Auditor's Reputation, and Company Size have a significant negative
effect on underpricing. The results of this study also indicate that the activity of
strengthening the total assets owned is part of a strategy to reduce the impact of
stock underpricing at the time of the IPO. | en_US |
