Market Conditions Experiencing Underpricing of Shares on the Indonesia Stock Exchange

Abstract

The objective of the research is to give empirical prove on market condition factors, underwriter reputation, auditor reputation, and the company ages toward company stock underpricing when the initial public offering is done, also to knowing the dominant factors in stock underpricing influences. The sample of this research is 16 companies that realize stock underpricing when the initial public offering was done in the Indonesia stock exchange in 2014-2017. The sampling method used is the purposive sampling method. The data analysis that is used in this research is the multiple regression linear analysis method. The result of multiple regression linear concludes that the dominant variable that influences underpricing is underwriter reputation. The result of this research concludes that: a simultaneous factor that contains a market condition, underwriter reputation, auditor reputation, and the influence of company ages toward stock underpricing occur. In a partial, market condition is significant influential toward stock underpricing occur in a listing company at Indonesia stock exchange in 2014-2017. Whereas underwriter reputation, auditor reputation, and the company ages are not influential toward stock underpricing occur in a listing company at Indonesia stock exchange in 2014-2017.