| Issue |
E3S Web Conf.
Volume 426, 2023
The 5th International Conference of Biospheric Harmony Advanced Research (ICOBAR 2023)
|
|
|---|---|---|
| Article Number | 02097 | |
| Number of page(s) | 8 | |
| Section | Innovative Management and Sustainable Society | |
| DOI | https://doi.org/10.1051/e3sconf/202342602097 | |
| Published online | 15 September 2023 | |
Long-Term Effect of IPO Underpricing on Aftermarket Liquidity
Finance (International) Program, Accounting Department, School of Accounting, 11480 Bina Nusantara University, Jakarta, Indonesia
* Corresponding author: amelia.limijaya@binus.edu
This research examines the long-term effect of IPO underpricing on the aftermarket liquidity for firms that decided to go public on the IDX between the period of 2016 to 2019. Additionally, this research also employs firm size, ownership structure, firm performance, and underwriter reputation as control variables. The sampling method used is a purposive sampling method and a total of 122 companies listed on the IDX’s main and development boards are used as the research samples. The method of analysis used is the multiple regression analysis. The result suggests that IPO underpricing does have a positive effect on aftermarket liquidity when a simple regression is conducted. However, its significance on liquidity is taken over by firm size when multiple regression is performed. The result might suggest that IPO underpricing is no longer relevant in the aftermarket liquidity since there is more information revealed within 12 months after the IPO. Nevertheless, result should be interpreted cautiously due to relatively small sample size, which may warrant further studies.
© The Authors, published by EDP Sciences, 2023
This is an Open Access article distributed under the terms of the Creative Commons Attribution License 4.0, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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