Based on behavioral finance theory, we empirically test the effect of chairman's education IPO price underpricing and analyze moderating role played by firm's P/E ratio. The results show that is significantly positively related to underpricing, while increase in ratio mitigates positive underpricing. Further study shows more significant stocks with low turnover rate, firm better high rate; firm...

In this study, we argue that media-provided information affects investors’ impressions of newly public firms. In 225 initial public offerings (IPOs), the volume of mediaprovided information had a negative, diminishing relationship with underpricing and a positive, diminishing relationship with stock turnover on the first day of trading. The relationship between the tenor of media-provided infor...

This study aims to determine the influence of total asset turnover, debt equity ratio (DER), company size, rupiah exchange rate and IHSG on occurrence stock underpricing levels. The population used is companies that conduct IPO (Initial Public Offering) Indonesia Stock Exchange period 2015-2019, 177 samples in this are 133 determined through purposive sampling. data analysis techniques multiple...

Going public (or initial offering IPO) is a corporate strategic decision for value enhancement. Underpricing phenomenon related to going and has been studied from purely financial perspective. In this paper, we investigate whether underpricing incorporates sustainability performance pre-IPO by establishing an original linkage between ESG factors before the firm's listing on stock markets. Using...

We present a new theory about underpricing and Venture Capital-backed (VC-backed) companies where the key feature is capacity constraints Venture Capital firms can take only a limited number of new projects. This model can match the evidence gathered by the empirical literature on the grandstanding hypothesis, i.e., that younger Venture Capitalists rush to Initial Public Offers (IPOs). Moreover...

We provide new insights into the determinants of acquirer announcement returns with a unique sample of targets that are acquired within three years of their IPOs. Existing studies of acquisitions of private and established public targets find positive relations between acquirer announcement returns and prior target valuation changes. In our sample of recently listed targets, we measure the prio...

We examine IPO underpricing, valuation, and wealth allocation in relation to investor sentiment, information asymmetry, and underwriter reputation. We find that underpricing is significantly higher for overvalued IPOs than for undervalued IPOs, and is positively correlated to investor sentiment. Information asymmetry is also positively correlated to the magnitude of underpricing but only for un...

We argue that high quality firms that expect larger quantity of cash flows in the near future are more likely to actively smooth earnings via discretionary accruals before seasonal equity offerings to reduce underpricing. If high quality firms are confident about future earnings, it is also plausible to assume that they also push their offer prices up more aggressively, and lessen the degree of...

This study intends to examine the factors that influence amount of underpricing equities during initial public offerings on Indonesia Stock Exchange. analysis makes use secondary data in form financial statement and other firm information from 2017-2020 IPOs The research sample consisted 150 firms selected using techniques purposive selection. employs linear regression approach panel STATA for ...