Effect of Financial Leverage, ROA, Ownership Concentration, Listing Delay on Levels Underpricing During Initial Public Offering (IPO) in Manufacturing Companies on the Indonesia Stock Exchange (2016-2020 Period)

Abstract

Theipurpose of this study is to analyze the factors that influence the level of underpricing of manufacturing companies that conduct IPO (Initial Public Offering). This research was conducted on manufacturing companies listed on the Indonesia Stock Exchange (IDX) in 2016-2020. The method used in this research is purposive sampling. With a sample of 45 IPO companies with 5 years of observation. Based on the results of the regression analysis in the study, it shows that the Financial Leverage variable has a positive effect on the level of underpricing, Return On Assets has a negative effect on underpricing, ownership concentration has no positive effect on underpricing, and listing delay has a negative effect on\underpricing.

Underpricing Signals: Exploitation of Dar Variables (Debt to Asset Ratio)

“…Then Irawan & Nasution (2023) added that their study concluded that DAR does not affect the level of underpricing. In contrast, the results of a study by Rahmawati et al (2022) Asserts that there is a positive influence of the Debt to Asset Ratio (DAR) on the level of underpricing. Putri & Sari (2023) reported with the results of the DAR variable there is an influence on underpricing based on the results of their study.…”