The Influence of Fundamental Factors on IPO Performance: Evidence from the Indonesian Capital Market

Ditry Hastari; Vivi Ariyani

doi:10.55927/ijabm.v4i5.541

Authors

Ditry Hastari PSDKU Manajemen, Universitas Katolik Widya Mandala Surabaya
Vivi Ariyani PSDKU Manajemen, Universitas Katolik Widya Mandala Surabaya

DOI:

https://doi.org/10.55927/ijabm.v4i5.541

Keywords:

ROA, DAR, Age, IPO Performance

Abstract

This study aims to examine the effect of Return on Assets (ROA), Debt to Total Asset Ratio (DAR), and Age on IPO performance. The population of this research includes companies that conducted Initial Public Offerings (IPOs) on Indonesia Stock Exchange (IDX) during the 2015-2023 period, with total sample of 396 companies. The type of data used is cross-sectional. The result show that ROA has significantly but weak negative effect on IPO performance, which may be attributed to the credibility of issuing company in generating profits and the transparency of financial information presented to potential investors. Age has significantly negative effect on IPO performance, as length of the time a company has been established reflects the amount of information availability regarding the company. This explains that the higher level of ROA and the older age of the company conducting the IPO, is able to reduce the level of underpricing

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