Underpricing and long-term market performance of initial public offerings in Indonesia: A quantile regression approach
Journal Title: Business and Economic Horizons - Year 2018, Vol 14, Issue 1
Abstract
This study aims to identify the relationship between underpricing and long-term market performance of IPOs in the Indonesian Stock Exchange (IDX), as well as determinants of IPOs' market performance. We based our paper on the idea that it is more meaningful and relevant to investigate underpricing and long-term market performance determinants at different distribution points. OLS and quantile regression analysis isapplied to 105 samples of IPOs during 2009-2013. The results of OLS and quantile regressions indicate that assets value, age, proceeds, and underwriters’ reputation are determinants of long-term market performance; while assets, age and proceeds also become underpricing determinants. Among these factors, proceeds become the most important determinant of underpricing and long-term market performance.
Authors and Affiliations
Nugroho Sasikirono, Sumiati Sumiati, Nur Khusniyah Indrawati
Keywords
Related Articles
- EP ID EP448171
- DOI 10.15208/beh.2018.13
- Views 70
- Downloads 0
Design of convertible debt financing - some observations from the American market
A convertible bond may be an attractive financial instrument that helps to achieve the optimal capital structure of a company. In this paper, we analyze 562 issues of bonds from the American market between 2002-2013. Us...
Demographic structure and housing prices: East Asia and Europe
The recent booms in the global housing markets have been suspected to be bubbles owing to the weak economic circumstances after the 2008 financial crisis. While the behavioral economics stresses the role of irrational hu...
Board diversity, audit committee characteristics and audit quality: The moderating role of control-ownership wedge
This study illustrates how control-ownership wedge impacts the monitoring role of the corporate board through the quality of audit services in Turkey. Turkey has made essential amendments in the field of external audit i...
The adoption of mobile payment services by consumers: an empirical analysis results
This study considers the problems of distribution and adoption of mobile payment services in Russia and the factors of their perception by distribution network companies and consumers. To analyze the adoption of mobile p...
Financial literacy and financial planning: Implication for financial well-being of retirees
This study examines how financial literacy, financial behaviour, family support (as another source of income), number of dependents, and retirement planning influence on the financial well-being of retirees in Cape Coast...