Decoding IPO underpricing: How auditor reputation moderates key influencing factors

Ni Wayan Trisna Purnama Dewi; Henny Triyana Hasibuan

doi:10.21744/ijbem.v8n3.2425

Authors

Ni Wayan Trisna Purnama Dewi
trisnapurnamadewi@gmail.com
Udayana University, Denpasar, Indonesia
Henny Triyana Hasibuan Udayana University, Denpasar, Indonesia

Keywords:

Initial Public Offering, Signalling Theory, Under-pricing

Abstract

The purpose of this study is to examine the factors influencing stock under-pricing in companies conducting Initial Public Offerings (IPOs) on the Indonesia Stock Exchange (IDX) during the period 2020–2024, with auditor reputation as a moderating variable. The population consists of companies that went public on the IDX between 2020 and 2024. The sample was selected using purposive sampling, resulting in 177 companies. The collected data were analysed using SPSS software with the Moderated Regression Analysis (MRA) method. The empirical findings indicate that the Debt-to-Equity Ratio (DER) has a significant effect on under-pricing. In contrast, Return on Assets (ROA), Earnings per Share (EPS), and firm size do not significantly influence under-pricing. Furthermore, statistical testing shows that auditor reputation does not moderate the effects of ROA, DER, EPS, and firm size on under-pricing.

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