Long-Term Effect of IPO Underpricing on Aftermarket Liquidity

This research examines the long-term effect of IPO underpricing on aftermarket liquidity for firms that decided to go public IDX between period 2016 2019. Additionally, this also employs firm size, ownership structure, performance, and underwriter reputation as control variables. The sampling method used is a purposive total 122 companies listed IDX’s main development boards are samples. analysis multiple regression analysis. result suggests does have positive when simple conducted. However, its significance taken over by size performed. might suggest no longer relevant in since there more information revealed within 12 months after IPO. Nevertheless, should be interpreted cautiously due relatively small sample which may warrant further studies.